XRP’s Market Dynamics Amidst Recent Whale Activity
The cryptocurrency XRP is navigating a delicate situation as its support at the $2.5 mark seems increasingly unstable. This fragility is attributed to a significant sell-off by large holders, commonly referred to as “whales,” who have recently offloaded a substantial amount of XRP.
Impact of Whale Sell-Off on XRP’s Market Position
Recent on-chain data from Santiment, highlighted in a post by Ali Martinez on October 25, reveals that whales have collectively sold approximately 70 million XRP. This massive transaction, valued at around $178 million, occurred over the past 48 hours and has put pressure on XRP’s price.
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The sell-off was predominantly conducted by wallets holding between 100,000 and 10 million XRP. As a result, XRP is currently trading at $2.54, precariously maintaining support amidst a climate of market unpredictability. Historically, such significant whale liquidations have often led to short-term price declines. Should this selling trend continue, XRP might revisit the crucial $2.00 support level.
Technical Indicators and Long-term Outlook for XRP
Despite the potential for a short-term correction, technical analyses suggest that XRP’s long-term prospects remain optimistic. An analysis shared by ChartNerd on October 25 highlights that XRP has been consolidating within a vertical accumulation range since January 2025. This pattern, coupled with technical signals, points towards a possible major breakout.
The Potential for XRP’s Breakout
XRP’s trading pattern, characterized by its movement between accumulation support and resistance zones, forms a prolonged sideways trend. Such patterns frequently precede significant directional shifts. If XRP can overcome the resistance around the $2.60 mark, it may trigger a breakout, with potential gains targeting the 1.618 Fibonacci extension. This projection estimates a possible price increase to between $5 and $6.
The weekly 55-day exponential moving average (EMA) remains a vital support level, bolstering XRP’s bullish market structure. Beyond technical factors, XRP’s future will likely be influenced by broader market fundamentals, including the anticipated approval of a spot XRP exchange-traded fund (ETF).
Fundamental Factors Influencing XRP’s Path
The approval of an XRP ETF was initially expected by late October but has faced delays due to the ongoing U.S. government shutdown. Additionally, Ripple’s strategy to raise $1 billion for establishing an XRP treasury is perceived as a significant positive signal, potentially impacting XRP’s trajectory favorably.
XRP Price Analysis and Market Sentiment
As of the latest data, XRP is trading at $2.54, reflecting an increase of over 3% in the last 24 hours, indicating resilience despite the whale-induced sell-off. Over the past week, XRP has experienced a rally of nearly 8%.
For XRP to achieve a breakthrough toward the $3 mark in the near future, it is essential for the cryptocurrency to reclaim the $2.60 resistance level and establish it as a new support.
