XRP Price Plummets: 70 Million Tokens Dumped by Whales

Reading time : 4 min.
Share: Facebook
Twitter

Georgi Minev
1 February, 2025, 21:43
182

XRP Price Faces Potential Drop as Whales Dump 70 Million Tokens

Crypto Market Volatility Sparks Bearish Sentiment for XRP

The cryptocurrency market has seen heightened volatility, leaving traders and investors uncertain about the short-term direction of digital assets. Among the affected tokens, XRP, the native cryptocurrency of Ripple Labs, appears vulnerable to further downside movement as bearish sentiment grows within the community.

Whales Unload 70 Million XRP: Bearish Signal?

A notable development has emerged in the past four trading days, as crypto whales have reportedly offloaded over 70 million XRP tokens onto exchanges. This massive selling spree, highlighted by crypto analyst Ali (@ali_charts) on X (formerly Twitter), has raised concerns among market participants.

“Whales have offloaded over 70 million $XRP in the past 96 hours!” — Ali (@ali_charts), February 1, 2025.

The large-scale sell-off signals potential downside pressure on XRP’s price, as whale activity is often seen as an indicator of market direction. Typically, such massive dumps trigger further declines, reflecting a bearish outlook among major investors.

XRP Price Action: Is a Deeper Drop Imminent?

At the time of writing, XRP is trading around $2.97, marking a 4.45% price decline in the past 24 hours. Despite the sell-off, XRP’s trading volume has remained stable, suggesting that market participants are observing price action before making decisive moves.

Technical Indicators Signal Further Downside

According to technical analysis, XRP is currently moving within a descending parallel channel on the daily timeframe. Additionally, the asset recently formed a bearish engulfing candlestick pattern, reinforcing the likelihood of an extended downturn.

Key Support Level: $2.75
Current Resistance: $3.10
200 EMA Support: XRP remains above the 200 Exponential Moving Average (EMA), suggesting the broader uptrend is still intact.

Cardano Price Squeeze: ADA Coils Below $0.27 as Whales Dump 130 Million Tokens

Based on historical price movements and recent technical indicators, XRP could decline by another 8.5%, potentially testing its support level at $2.75 before finding a reversal or stabilizing.

Traders Turn Bearish: XRP Faces Increased Short Pressure

Market sentiment remains heavily bearish, as revealed by CoinGlass data, which tracks leveraged positions on XRP.

At $2.91, bullish traders hold $28 million worth of long positions, making it a crucial level for buyers.
At $3.10, short sellers are over-leveraged with $56.3 million in short positions, signaling increased downside pressure.

If XRP drops below the $2.91 level, long positions could be liquidated, accelerating the sell-off toward the $2.75 support zone.

Conclusion: Will XRP Break Down Further?

XRP’s recent whale sell-off, bearish price action, and increasing short positions suggest a potential drop toward $2.75 in the coming days. However, if the asset maintains its position above the 200 EMA, bulls may attempt to regain control and push for a reversal.