XRP Slips to $2.40 as Whales Accumulate, Suggesting Possible Support but Limited Short-Squeeze Upside

• XRP hovers near a key support around $2.40, with a potential relief move to $2.60

• Whale activity shows renewed accumulation despite price weakness

• Open interest remains relatively low (~$1.31B), limiting bullish leverage

XRP price outlook and near-term dynamics: focus on support around $2.40, liquidity, and positioning to gauge the next move for XRP traders.

What is XRP’s current price and outlook?

XRP is trading around $2.40 as of October 22, 2025, after renewed whale activity and exchange outflows. Near-term pressure persists, but renewed accumulation near the $2.40 level indicates potential support. The overall outlook remains mixed due to limited liquidity and modest open interest.

How does XRP’s liquidity and open interest influence its short-term moves?

Open interest stands at about $1.31 billion, well below levels seen for most top 10 coins, signaling limited leverage for rapid rallies. Most positions cluster up to $2.60, keeping upside capped. A short squeeze could push prices briefly above $2.60 but is unlikely to decisively break above $3 in a bullish scenario.

Frequently Asked Questions

What caused XRP’s price drop to $2.40 in October 2025?

During the October 11 sell-off, large holders deposited 43 million XRP on major exchanges, contributing to a drop below $3. The subsequent consolidation around $2.40 followed renewed accumulation, while exchange outflows and overall market sentiment remained negative as noted by market observers like Cryptopolitan.

Is XRP a good investment right now?

Current data show near-term price weakness and exchange outflows amid continued whale activity. While there are long-term use cases for the XRPL, the asset remains volatile with significant risk, and potential investors should assess their risk tolerance and investment goals before exposure.

Key Takeaways

• Near-term downside risk persists: XRP trades near $2.40 with limited liquidity, suggesting a cautious stance.
• Whale activity signals mixed signals: Accumulation near support contrasts with ongoing selling pressure from earlier rounds.
• Liquidity remains tight: Open interest around $1.31B limits upside, with a short squeeze likely capped near $2.60.

Conclusion

XRP faces near-term headwinds but maintains a community optimistic about XRPL-based DeFi. With exchange outflows and modest open interest, the path remains data-driven; investors should monitor price action around the $2.40-$2.60 zone and watch for renewed accumulation or capitulation. Staying informed will help in timely decision-making.

XRP情景分析：价格在$2.40附近徘徊，鲸鱼在低位附近持续买入。短期仍存在压力，但在$2.40处可能形成支撑。长期前景混合，流动性有限且未平仓合约保持温和，需关注后市动向。

XRP liquidity allocation remains cautious, with a short squeeze possible only up to $2.60 in a more bullish scenario. | Source: CoinGlass.

Based on the liquidation heatmap, XRP has relatively small accumulation of positions. The token has relatively small liquidity for triggering a short squeeze. 

As of October 22, most positions for XRP were up to $2.60, signaling a short squeeze could not cause a recovery above $3. 

XRP currently moves through Binance, Bybit, and Gate. The three exchanges saw the most notable outflows in the past week. 

Binance held over 3.62B in XRP exchange reserves as of October 16, seeing the number shrink to $3.34B as of October 21. 

Balances remained relatively unchanged on Bitstamp and Bitfinex. However, Bybit reserves shrank from 442M to 298M XRP. Gate saw its XRP reserves diminish from 67M to 48M. 

The outflows from exchanges may suggest renewed interest after the recent selling round. XRP was not only sold by whales, but by retail traders after the October 11 crash. The asset dipped to a local low of $1.90, later still managing a recovery to $2.50. 

Recent sentiment metrics show XRP is mostly the target of negative comments on social media, the lowest level of crowd sentiment since January. The metric suggests the market may move in the opposite direction to crowd sentiment. 

XRP may also move in unexpected ways due to its Korean won market, taking up over 13% of trading volumes. The token also trades against Binance’s FDUSD, offering an alternative source of liquidity.