XRP is witnessing intensified selling pressure as major holders, commonly known as whales, are offloading approximately $50 million worth of tokens daily. This surge in large-scale transfers is stirring concerns about a possible deeper correction in the cryptocurrency’s price, which recently slipped below the $3 mark.
Data analyzed by CryptoQuant, utilizing a 30-day moving average, reveals a consistent outflow of XRP from whale wallets. CryptoQuant analyst Maartunn highlighted that this selling trend remains persistent, signaling sustained pressure on the token’s market value.
Though no immediate crash has occurred, the elevated XRP supply appearing on centralized exchanges during late September and early October suggests that whales might be preparing for more extensive liquidation. Glassnode statistics validate this increase in available XRP on trading platforms, underscoring the potential for heightened volatility ahead.
In an X (formerly Twitter) commentary published on October 3, trader CryptoOnchain noted, “The data points to immense selling pressure, creating a high risk of a sharp correction.” The trader’s observation aligns with the broader market sentiment, which shows a return of fear indicators to levels last seen during notable macroeconomic sell-offs earlier this year.
From a technical analysis standpoint, veteran trader Peter Brandt has identified XRP as a candidate for a short position if it completes a descending triangle chart pattern. Brandt emphasized that a decisive break below the $2.75 support level could trigger further declines. The measured target of this pattern places XRP near $2.20, representing a potential 22% drop from recent prices.
The zone between $2.75 and $2.80 remains a critical support level to watch. Maintaining prices above this range appears essential to prevent accelerated downturns in the near term.
Amidst this bearish technical landscape, optimism persists around the regulatory front. Market commentator XRP Update shared expectations that the U.S. Securities and Exchange Commission (SEC) might approve an XRP-based exchange-traded fund (ETF) by October 18. Such an approval could be an important milestone for XRP, potentially boosting institutional interest and enhancing market credibility.
However, the market response to any positive regulatory news remains uncertain. There could be a scenario where traders capitalize on the announcement to take profits, especially if large holders leverage it as an opportunity to exit positions.
Investors are reminded that this information does not constitute financial advice. The cryptocurrency market involves significant risks, and thorough personal research is advised before making any trading decisions.
