XRP Whales Offload $50 Million Daily Amid Analyst Warnings of Potential Sharp Correction
XRP Price Decline: Market Dynamics and Future Prospects
XRP Faces Selling Pressure from Whales
XRP recently dipped below the $3 threshold as significant holders accelerated their sales, stirring concerns of a more pronounced market pullback. Analysis by Maartunn from CryptoQuant reveals that these whales have been offloading approximately $50 million worth of XRP daily. This trend is based on a 30-day moving average of whale activity, highlighting persistent selling pressure.
Data from Glassnode supports this observation, showing an increase in XRP supply on centralized exchanges from late September to early October. Such trends often signal large-scale selling activities. Trader CryptoOnchain emphasized, “This behavior strongly indicates that whales are gearing up for a significant sell-off, increasing the risk of a sharp price correction.”
Supply on Exchanges: A Key Market Indicator
The growing XRP balances on exchanges have become a critical metric for traders anticipating the next market move. An increase in available supply typically suggests more potential sell orders, compounded by the broader market’s anxiety. Current sentiment data reflects a resurgence of fear in the crypto markets, reminiscent of the periods preceding April’s tariff-driven sell-off, thereby heightening the probability of continued volatility.
Analysts caution that ongoing whale activity and rising exchange inflows could maintain downward pressure on XRP prices in the short term. Nonetheless, long-term investors remain hopeful about the prospects of institutional adoption.
Chart Patterns and Key Support Levels
Veteran trader Peter Brandt has identified a descending triangle pattern on XRP’s chart. This formation could lead to further losses if the support levels fail to hold. The triangle suggests a potential move toward the $2.20 mark, representing roughly a 22% drop from current standings. The crucial support range lies between $2.75 and $2.80. A breakdown below this range could solidify the bearish trend, whereas maintaining this zone is crucial for bulls aiming to sustain XRP’s ongoing rally.
Potential Upside from ETF Approval
In the midst of market turbulence, optimism exists around potential upcoming catalysts. The possibility of the U.S. SEC approving an XRP ETF by October 18 could mark a pivotal moment for institutional adoption and market credibility. Analysts suggest that while approval might boost market sentiment, it could also prompt a “sell-the-news” reaction if whales opt to exit with increased liquidity.
Traders are vigilantly observing on-chain data for indications of decreasing selling pressure. Additionally, whether XRP can maintain support around the $2.80 level remains in focus. At the latest update, XRP trades at $2.8185.
