XRP Whales Offload $480 Million Amidst Market Downturn

XRP Dips Below Critical $2 Level

XRP has breached the $2 psychological threshold, intensifying bearish trends across the crypto market. The altcoin's decline has been swift, driving significant sell-offs by large investors.

Whales Shift from Accumulation to Selling

Key investors, known as whales, have transitioned from accumulating to selling. Addresses with holdings between 10 million and 100 million XRP have liquidated over 250 million tokens, valued at more than $480 million, in just two days. This selling spree follows a period of over 20 days of accumulation, indicating a shift in sentiment among major holders. Their exit weakens XRP's immediate recovery prospects, potentially prolonging its downward trajectory.

Macro indicators reflect mounting fragility, with the MVRV Long/Short Difference falling below zero for the first time in five months. This suggests long-term holders are no longer profitable, shifting profit potential to short-term traders who may sell quickly during price upticks, thereby limiting upward momentum and increasing volatility.

Potential for Further Decline

XRP has dropped 23% in the past 11 days, now trading at $1.92, just below the $1.94 resistance. A continued sell-off by whales or worsening macro indicators could push XRP further down to $1.79 or lower, exacerbating losses and extending the current bearish trend.

However, if investor confidence stabilizes or broader market conditions improve, XRP could reclaim the $2 support level, potentially rising to $2.14 and reversing recent losses.