XRP Whales Offload $1.9B Amid Warning of Potential 30% Price Crash
XRP's largest holders, known as whales, have been quietly offloading approximately 640 million tokens over the past month, amounting to about $1.91 billion at current prices. This significant distribution has analysts warning of a potential 30% price crash in the near term.
Whale Wallets Reduce Holdings by 640 Million XRP
Since July 9, onchain data from
CryptoQuant reveals that XRP whales have offloaded around 640 million tokens. Most of this selling occurred while XRP traded between $2.28 and $3.54.
This marks the second time in the past year that whales have distributed tokens during price rallies. Between November and January, whales aggressively reduced exposure even as XRP surged from $1.65 to $3.27, suggesting retail investors absorbed much of the sell pressure.
Not all outflows necessarily indicate selling; some whale activity may reflect internal reshuffling. However, an inverse pattern is evident: whale accumulation tends to increase during market weakness, as seen between January and April when XRP corrected from $3.27 to $1.87.
As of the latest data, whale flows show signs of a modest recovery. The CryptoQuant-affiliated analyst, Enigma Trader, emphasized that XRP's market may remain structurally weak unless whale wallets see daily inflows exceeding 5 million tokens.
“At present, there is no sign of consistent accumulation from large holders, a key component for a constructive trend reversal.”
XRP Must Hold $2.65 Support or Face Risk of 30% Crash
XRP needs to maintain support above the $2.65 level to avoid a significant price drop. Technical analysis reveals a growing bearish divergence on the weekly charts, where XRP price has made higher highs while the Relative Strength Index (RSI) has formed lower highs since January.
This divergence signals weakening momentum despite rising prices, reminiscent of the market top seen in April 2021. Additionally, trading volume has declined during the recent price push, reinforcing the risk of momentum exhaustion.
If XRP breaks below the $2.65 support, it could fall toward the 20-week exponential moving average (EMA) near $2.55. A further break below this level increases the risk of a deeper drop to the 50-week EMA at $2.06, a critical mean-reversion point following overheated rallies.
This article does not constitute investment advice. All trading involves risk, and readers should conduct their own research before making decisions.
Key Takeaways
- XRP whales have offloaded 640 million tokens (~$1.91 billion) over the past month.
- Whale selling has occurred primarily during price rallies.
- Structural weakness persists unless whale wallets see daily inflows above 5 million XRP.
- Technical indicators suggest a risk of a 30% price crash if $2.65 support fails.
Tags
#cryptocurrency #blockchain #XRP #Ripple #Altcoins #MarketAnalysis #TechnicalAnalysis
Author Bio
Yashu Gola is a cryptocurrency journalist covering blockchain and market trends for Cointelegraph.
Source Attribution
Originally published at Cointelegraph on Thu, 07 Aug 2025 11:06:15 GMT
Frequently Asked Questions
XRP Market Dynamics
Q: Why are XRP whales offloading their tokens?
A: While the exact reasons for individual whale actions are not public, offloading during price rallies can be a strategy to take profits or rebalance portfolios. The sustained selling pressure suggests a lack of strong conviction for further short-term price increases from these large holders.
Q: What is the significance of the $2.65 support level for XRP?
A: The $2.65 level is identified as a critical support zone. Holding above this level is crucial for maintaining upward momentum. A break below it could trigger a significant price correction, potentially leading to a 30% drop as indicated by technical analysis.
Q: What is a bearish divergence on a weekly chart?
A: A bearish divergence occurs when the price of an asset makes higher highs, but a technical indicator like the Relative Strength Index (RSI) makes lower highs. This suggests that despite the rising price, the underlying momentum is weakening, which can precede a price reversal or crash.
Q: What does it mean if whale accumulation increases during market weakness?
A: When whales accumulate during market weakness (price corrections), it often indicates they see buying opportunities and expect a future price increase. This behavior can be a bullish signal, suggesting that large holders are accumulating at lower prices.
Market Analysis and Predictions
Q: What are the implications of declining trading volume during price pushes?
A: Declining trading volume accompanying price increases can signal a lack of broad market participation and conviction. It may indicate that the price rise is not sustainable and could be vulnerable to a sharp reversal if selling pressure increases.
Q: What is the 20-week EMA and the 50-week EMA?
A: The 20-week Exponential Moving Average (EMA) and 50-week EMA are technical indicators that smooth out price data to create a single, constantly updated average. They are used to identify trends and potential support or resistance levels. A break below these EMAs can indicate further downside potential.
Q: How can XRP's structural weakness be addressed?
A: According to analysts, XRP's market may remain structurally weak unless whale wallets see consistent daily inflows exceeding 5 million tokens. This suggests that sustained accumulation by large holders is a key factor for a stable upward trend.
Crypto Market AI's Take
The recent offloading of XRP by whales, coupled with bearish technical indicators, signals a period of caution for the cryptocurrency. While XRP has shown resilience in the past, the observed whale activity and technical divergence suggest potential downside risk. For traders and investors, this highlights the importance of closely monitoring support levels, such as the critical $2.65 mark. Our AI-powered market analysis tools continuously track such on-chain data and technical indicators to provide predictive insights. For those looking to navigate these volatile markets, understanding the factors driving price movements and leveraging data-driven strategies is crucial. You can explore our AI Crypto Market Platform for real-time analytics and AI-driven trading strategies to help make informed decisions in this dynamic environment.
More to Read:
- XRP Price Prediction: Is a 30% Crash Imminent?
- Understanding Technical Analysis: MACD and RSI Explained
- The Impact of Whale Transactions on Cryptocurrency Markets
