XRP Plummets 14.5% This Week As Whales Sell $2.34B

XRP, a prominent cryptocurrency, has experienced a significant downturn in recent days, with its price plummeting and nearing the $2 mark. This decline has resulted in substantial losses for the cryptocurrency, accompanied by a notable increase in selling pressure. Despite the bearish momentum, key investors are attempting to mitigate the negative impact.

Whale activity has been a significant factor in the recent decline of XRP’s price. Addresses holding between 100 million and 1 billion XRP have sold over 1.12 billion XRP, valued at $2.34 billion, within the past week. This massive sell-off has reduced their total holdings to 8.98 billion XRP. The selling activity from these whale addresses indicates a cautious outlook for XRP. While whale selling often signals market uncertainty, it can also lead to significant short-term price movements. The recent heavy selling suggests that market participants are uncertain about the short-term price action, and further bearish trends could follow if this continues.

On a broader market level, XRP’s macro momentum shows signs of divergence from the whale selling. The Liveliness metric, which tracks the behavior of long-term holders (LTHs), is currently declining. A falling Liveliness typically signals that LTHs are accumulating more of the asset at lower prices rather than selling. This drop to a three-month low suggests that long-term holders are maintaining their conviction and accumulating XRP, even as whale selling intensifies. The steady accumulation by LTHs might help cushion the bearish effects created by the whales. This behavior can counteract the selling pressure, potentially offering stability and supporting a recovery if market conditions improve.

XRP’s price has fallen by 14.5% this week, bringing it to $2.09, dangerously close to losing the critical $2.02 support level. The ongoing bearish momentum has created mixed signals in the market, which are likely to keep the price stuck in a narrow range for the time being. If XRP can bounce back from the $2.02 support, it could recover some of the recent losses. However, the altcoin may remain consolidated below the $2.27 resistance level unless more positive news or market conditions arise to push it higher. If XRP breaches through the $2.27 barrier or falls below $2.02, it could invalidate the current consolidation outlook. A successful breach of $2.27 could pave the way for a price recovery, with $2.56 being the next significant target.