XRP Faces Sharp Correction Amid Whale Distribution Pressure and Key Technical Levels
Price Drop, Whale Activity, and Breakout Support Tracked
- After reaching a yearly high, XRP is undergoing a sharp ~19% correction, challenging crucial resistance and support levels.
- Significant amount of XRP (~640 million tokens, approx. $340 million value) has been offloaded by large holders (whales) since July 9th.
- The crucial $2.65 support zone (aligning with quarterly VWAP and 50% Fib Retracement) is critical for the continuation of the bullish trend following the July breakout.
XRP (XRP) experienced a sharp sell-off recently, dropping nearly 19% following its rally to a yearly high of $3.65 reached on July 18, 2024. The altcoin is currently struggling to reclaim a key resistance zone between $3.10 and $3.00, as it consolidates below its recent peak.
Market activity briefly tested a key support range near $2.66-$2.80 on August 3, temporarily dipping lower before staging a comeback, resulting in a formation of a “higher low”. This bounce suggests buying interest below $3.00.
Data suggests the recent sell-off is partly driven by large holders who have been actively exiting their positions in the past three weeks. CryptoQuant data indicates a negative net flow of 640 million XRP from whale wallets between July 9 and August 5 (approximately a 50-day period). This significant distribution is chronologically linked to the price correction.
Analysts highlight that holding the $2.65 level, which aligns with the quarterly VWAP (Volume-Weighted Average Price) and coincides with the 50% Fibonacci retracement of the previous rise from ~$2 to $3.65, is critical.
Should XRP ultimately breach the $2.65 support zone, analysts warn it could signify a loss of bullish momentum, erode the recent structural shift where this level flipped from resistance to support after the July breakout, and potentially invalidate catalyst-based target forecasts. A breakdown could signal an intent to retest the crucial psychological $2 level.
XRP Must Hold $2.65 to Retain Bullish Momentum
According to analysts tracking technical structures, the integrity of the current multi-month uptrend for XRP hinges critically on its ability to maintain a position above $2.65.
The structure remains dependent on the preservation of bullish price action initiated following the July breakout above $3.10-$3.00, with $2.65 serving as a vital consolidation point derived from the breakdown of the previous range and relevant move and period indicators.
Ultimately, the interplay between whale distribution, technical stop-losses triggered near the high, broader market conditions, and the critical support resistance levels will dictate short-term price movements and longer-term trajectory for XRP.
Disclaimer: This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making any decisions.
