XRP has recently experienced a sharp rejection after briefly touching $2.17. On-chain data exposes concerning behavior among large holders. Is this selling pressure signaling a turning point for Ripple's token?
XRP is currently going through a challenging phase. After reaching a peak at $2.17, the token was rejected from its 6-hour order block and fell back below its trendline. This is a clear signal of buyer weakness and that sellers still have the upper hand.
Ripple failed to consolidate above the psychological threshold of $2.12. This technical rejection comes with concerning signals regarding whale activity. On-chain data suggests that large wallets are not in accumulation phase, but rather reducing their positions. This behavior contrasts sharply with previous bullish phases, where whales accumulated massively before rallies.
Consequently, if XRP loses its mid-range level at $2.057, a return to the bottom of the range at $1.90 will be almost certain.
On-chain flow analysis reveals a notable shift in behavior among large XRP holders. Unlike previous weeks where transfers to cold wallets dominated, we now see an increase in movements toward exchanges. This dynamic suggests an intention to sell rather than hold long term.
Addresses holding more than 10 million XRP show increased activity. Several significant transactions have been recorded toward major exchange platforms like Binance and Coinbase. This type of movement often precedes correction periods. Experienced traders scrutinize these metrics to anticipate the next support zones.
The buy-sell ratio of large orders has also reversed. Market makers seem less inclined to defend the $2.10 level. This absence of institutional support partly explains XRP’s difficulty in maintaining its gains. The order book shows a concentration of sell walls between $2.15 and $2.20, creating solid technical resistance.
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From a technical analysis perspective, XRP finds itself at a critical crossroads. The rejection at $2.12 activates several bearish scenarios in the short term. The first critical support sits around $1.90, which is the bottom of the range. The next support levels are located at $1.81, $1.75, and then down to $1.55.
Momentum indicators like the RSI show bearish divergence on the 4-hour timeframe. The MACD just crossed below its signal line, confirming the loss of bullish momentum. Declining volumes during technical rebounds also indicate waning demand.
However, not everything is negative for XRP. The regulatory context around Ripple remains broadly favorable, and some analysts view this correction as healthy consolidation. To invalidate the bearish scenario, XRP would need to reclaim $2.12 with significant volume and, most importantly, maintain this level as new support. Traders are particularly watching the $2.05 zone, which represents the current equilibrium between buyers and sellers.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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