XRP (XRP-USD) fell below the $3 mark this week as large holders accelerated their selling, fueling fears of a sharper pullback.
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According to CryptoQuant analyst Maartunn, whales have been moving around $50 million worth of XRP per day out of their wallets. “Selling pressure persists,” he said, noting that the data is based on a 30-day moving average of on-chain whale flow.
Data from Glassnode also shows a spike in XRP supply held on centralized exchanges through late September and early October, a trend often associated with large-scale selling.
Trader CryptoOnchain said this behavior “strongly suggests whales are positioning for a significant sell-off,” adding, “The data points to immense selling pressure, creating a high risk of a sharp correction.”
Supply on Exchanges Climbs
The rise in exchange balances has become a key indicator for traders watching the next move. An increase in available supply usually means more potential sell orders, particularly when combined with broader market anxiety.
Sentiment data shows that fear in crypto markets has returned to levels last seen during April’s tariff-driven sell-off, raising the odds of continued volatility for XRP.
Analysts warn that sustained whale activity and rising exchange inflows could keep pressure on prices in the short term, even as long-term holders remain optimistic about institutional adoption.
Descending Triangle Targets $2.20
Veteran trader Peter Brandt said XRP’s chart shows a descending triangle pattern, which could trigger further losses if support breaks. “$XRP is on my list of short candidates, but it is conditional upon completing the descending triangle,” he said.
The structure points to a measured move toward $2.20, representing a roughly 22% decline from current levels. The key support zone sits between $2.75 and $2.80, and a breakdown below it could confirm the bearish setup.
Holding this range is critical for bulls hoping to maintain control after XRP’s recent multi-year rally.
ETF Speculation Offers a Glimmer of Hope
Despite the near-term weakness, some traders are still watching a potential catalyst on the horizon. Market commentator XRP Update said that the U.S. SEC may approve an XRP ETF by October 18, which could mark “a turning point for institutional adoption and market legitimacy.”
Analysts note that while an approval could lift sentiment, the event might also trigger a sell-the-news reaction if whales use it as a liquidity exit point.
Until then, traders are monitoring on-chain data for signs that selling pressure is easing and whether the $2.80 level can hold as support.
At the time of writing, XRP is sitting at $2.8185.
