The cryptocurrency market often presents complex dynamics, and recent analysis has shed light on the persistent downward pressure experienced by XRP. Despite the perceived success of its Exchange Traded Funds (ETFs), an in-depth report from the on-chain analytics platform CryptoQuant indicates that significant selling activity from large holders, often referred to as “whales,” is a primary driver behind its price depreciation, pushing it below key psychological thresholds.
Unpacking XRP’s Price Volatility: The Whale Effect
According to CryptoQuant analyst PelinayPA, the anticipation and subsequent approval of XRP ETFs, which theoretically should have spurred institutional demand, have instead coincided with an escalation of selling pressure. This counter-intuitive market reaction points to underlying structural issues driven by major market participants.
The core of this selling pressure originates from a specific cohort of large investors. CryptoQuant’s data highlights “whales” holding between $100,000 and $1 million in XRP, as well as those with over $1 million, as the dominant contributors to significant inflows into major cryptocurrency exchanges, particularly Binance.
These substantial transfers to exchanges are typically a precursor to selling. PelinayPA’s analysis reveals a consistent pattern: following each major spike in exchange inflows, XRP’s price tends to form a structure of lower highs and lower lows. This technical pattern is a strong indicator that the available supply of XRP is currently overwhelming market demand.
A critical factor exacerbating this situation is the apparent absence of robust new spot buyers in the market. Even without aggressive “dumping” from whales, the continuous increase in available supply on exchanges acts as a persistent downward force on XRP’s price.
Critical Support Levels for XRP
In light of the ongoing selling pressure, CryptoQuant has identified crucial price levels that warrant close observation for XRP investors:
- Primary Support Zone: The range between $1.82 and $1.87 has been pinpointed as the first major support. This area has historically shown brief periods of price stabilization and attracted some smaller buying interest.
- Potential Downside Risk: Should the substantial outflows persist, XRP faces a significant risk of declining further into the $1.50 to $1.66 range.
The current on-chain indicators and price action do not suggest an imminent bullish rally for the altcoin as long as this intense selling pressure continues.
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