XRP Faces Key Resistance Amidst Whale Distribution
XRP has been on a turbulent ride lately, dropping nearly 19% after reaching a yearly high of $3.65 on July 18. This sharp correction puts XRP in a precarious position, struggling to regain ground within the resistance zone between $3.00 and $3.10. Recent trading sessions have seen prices fluctuate, briefly touching support levels around $2.66 to $2.80 before staging a rebound on Sunday, which resulted in a higher low.
Whale Activity and Market Trends
The current pullback can be attributed in part to significant selling by large holders, known as whales. Since July 9, these wallets have offloaded over 640 million XRP tokens, roughly valued at $340 million. Data from CryptoQuant shows a consistent negative netflow over the past 90 days, indicating that the distribution pressure could continue to influence prices adversely.
Prominent trader Nebraskangooner remarks that XRP might enter a “full pump retrace,” potentially revisiting the previous rally’s base around the $2 mark. Maintaining the $2.65 level is crucial for any hopes of a bullish trend. That price point previously served as vital resistance in the first half of 2025, and its importance grew when it turned into support after breaking above in July.
Technical analyst Dom pointed out that XRP’s recent pricing dynamics have kept it clear of critical thresholds like $2.80, emphasizing that a stable holding above $2.65 is essential. This level aligns not only with the quarterly VWAP (Volume-Weighted Average Price) but also acts as a pivotal support zone. Should the price dip below this marker, it could severely undermine proposed bullish setups.
Technical Analysis and Future Implications
Another analyst, Mind Trader, provides insights into the Fibonacci retracement levels, noting that XRP has completed a 50% retracement from its peak at $3.65. Historically, maintaining this level could pave the way for a resurgence targeting new highs around $4.15. However, a breach below $2.65 risks not only retesting the previous range but also negating the gains built over several months.
XRP’s technical journey is a case study in volatility and the need for vigilance among traders. As the market continues to react to whale activity and broader trends, the dynamics of supply and demand will play a pivotal role in determining whether XRP can reclaim its upward momentum.