XRP has retraced below the $3 psychological level after whales offloaded nearly half a billion tokens, raising questions about whether the market is bracing for a deeper correction.
Summary
- XRP dropped below $3 as whales sold 470M tokens in 10 days.
- Despite the sell-off, over 93% of holders remain in profit.
- Technicals suggest neutral momentum with risks of further downside.
XRP (XRP) slipped under the $3 mark on Aug. 20, trading at $2.88 at press time, down about 4% in the past 24 hours. The token has now shed 10% in the last week and 17% over the past month, standing nearly 20% below its all-time high of $3.65 set in July.
Whale selling adds pressure to XRP price
On an Aug. 20 post on X, analyst Ali Martinez noted that whales have sold around 470 million XRP in the last 10 days, raising concerns about mounting selling pressure. Large liquidations like this frequently slow down price momentum, especially when overall market sentiment is waning.
Despite the pullback, more than 90% of XRP’s circulating supply has remained in profit since mid-July, as per Glassnode data, with holders still averaging profit margins above 90%. This unusually high profitability ratio, combined with the completion of Ripple’s years-long legal battle with the Securities and Exchange Commission suggests much of the good news may already be priced in.
Analysts warn that such extended profit levels can trigger heavier profit-taking if markets face another bearish shock.
XRP technical analysis
The technical indicators for XRP show a cautious outlook. While oscillators like the MACD flash sell signals, the relative strength index is at 42, indicating that the market is neither overbought nor oversold. Momentum suggests a potential short-term relief, but moving averages paint a different picture.
XRP daily chart. Credit: crypto.news
XRP has consistently traded below its short- and mid-term averages, such as the 10-, 20-, and 50-day SMAs and EMAs, indicating sustained selling pressure. In the longer term, there are indications of support, as the 100- and 200-day moving averages are still in “buy” territory. This suggests that the overall upward trend will continue as long as XRP stays above key long-term support levels.
In a bearish scenario, XRP might retest the lower limit of its seven-day range at $2.86. If it continues to decline, the next support level might be around $2.70. On the other hand, bulls would have to recover the $3.00–$3.10 range to gain traction and try to push toward $3.30 once more.