August 6, 2025
5 min read
Biraajmaan Tamuly
XRP corrects 19% from highs as whale selling intensifies. Holding .65 support is critical to avoid a full retrace to .
XRP Price Faces 'Full Pump Retrace' if $2.65 Support Fails
XRP is currently under significant pressure following a sharp correction after reaching a yearly high of $3.65 on July 18. The altcoin has dropped nearly 19% since then, struggling to reclaim the resistance zone between $3.00 and $3.10. On August 3, prices briefly dipped to a crucial support range between $2.66 and $2.80 before bouncing back and forming a higher low the following day. Data from CryptoQuant indicates that this retracement is partly driven by large holders exiting the market. Over the past three weeks, whale wallets—addresses holding significant amounts of XRP—have been steadily offloading their positions. Between July 9 and August 5, the 90-day moving average of whale netflows is negative 640 million XRP (valued at roughly $340 million), signaling sustained distribution pressure coinciding with the recent price slump. Prominent crypto trader Nebraskangooner warns that XRP could face a "full pump retrace," potentially revisiting the base of the previous rally near $2.The Crucial $2.65 Support Level
The $2.65 price point is critical for XRP’s bullish market structure. This level acted as significant resistance throughout the first half of 2025. After breaking above it in July, $2.65 flipped into strong support, marking a key technical shift. Maintaining this support is essential to preserve the uptrend narrative. Crypto analyst Dom notes that XRP managed to hold $2.80, an initial key area of interest, and is currently avoiding a drop below $2.65, which aligns with the quarterly Volume-Weighted Average Price (VWAP). VWAP represents the average price of an asset traded over a period, weighted by volume, and is widely used by traders to assess fair value. Dom cautions that a move below this zone would severely damage the chart structure, potentially invalidating short-term bullish setups. Technical analyst Mind Trader adds that XRP has completed a 50% Fibonacci retracement from its $3.65 high. Historically, if this 50% retracement level holds, XRP could target a renewed push toward $4.15, a new all-time high. However, if XRP breaks below $2.65, it risks falling back into its previous trading range and potentially retesting $2. This would essentially undo months of gains and signal broader market weakness.This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making decisions.
Tags: #cryptocurrency #blockchain #XRP #altcoin #whale #market-analysis
Frequently Asked Questions (FAQ)
XRP Market Dynamics
Q: What is causing XRP's recent price drop? A: The price drop is attributed to significant selling pressure from large XRP holders (whales) and a broader market correction after reaching a yearly high. Q: What is the significance of the $2.65 support level for XRP? A: The $2.65 level is a critical support for XRP's bullish market structure. It previously acted as resistance and, after being broken, has become a key support level. Failing to hold this level could invalidate short-term bullish trends and lead to further price declines. Q: What is the Volume-Weighted Average Price (VWAP) and why is it relevant to XRP's price action? A: VWAP represents the average price of an asset over a period, weighted by volume. For XRP, the $2.65 level aligns with its quarterly VWAP, making it a significant technical indicator. A break below this could signal weakness. Q: What is a "full pump retrace" as mentioned by Nebraskangooner? A: A "full pump retrace" suggests that XRP might decline all the way back to the base of its previous rally, potentially testing the $2 price level, if the key support levels are breached. Q: What historical patterns suggest XRP could reach $4.15? A: Technical analysts suggest that if XRP holds its 50% Fibonacci retracement level from its recent high, it could potentially target a new all-time high around $4.15.Crypto Market AI's Take
The recent price action of XRP, with its sharp decline from recent highs and the critical support level at $2.65, highlights the inherent volatility and reliance on technical indicators within the cryptocurrency market. At AI Crypto Market, our AI-driven tools constantly monitor these levels and on-chain data, such as whale movements, to provide predictive analytics and actionable insights. Understanding critical support and resistance levels, alongside whale activity, is key to navigating these market fluctuations. Our platform aims to empower traders with advanced analytics to make informed decisions amidst such conditions.More to Read:
- Is XRP Poised to Repeat January's 70% Rally?
- XRP Historic 18% Drop, 6.7% Rebound: Bear Trap in July 2025
- XRP News Today: Crypto Market Holds Neutral Ground as Funding Rates Stabilize at 0.01%