XRP Price Could Suffer Due To Whales’ $500 Million Selling

XRP has recently experienced a brief recovery, but the cryptocurrency is facing significant challenges. 

The broader market sentiment remains bearish, and the price movement is under pressure due to large-scale selling by whales. This selling activity, coupled with market uncertainty, suggests that the current rally may not be sustained.

XRP Whales Are Switching Stances

Whales, or large holders of XRP, are showing signs of bearish sentiment despite the recent price rise. According to recent data, addresses holding between 10 million and 100 million XRP have sold more than 220 million XRP, worth approximately $500 million, in the past six days. 

This significant selling indicates that these major investors no longer believe in the potential for further short-term recovery. The behavior of these large holders is especially impactful because of their influence on the market. Their decision to exit early suggests a lack of confidence in the price continuing upward, which could exacerbate the downward pressure on XRP in the coming days.

The broader market conditions are also contributing to XRP’s price difficulties. Technical indicators such as the MACD (Moving Average Convergence Divergence) suggest that the cryptocurrency still faces bearish momentum. 

The MACD histogram has recently flipped positive, but the MACD line has yet to cross above the signal line, indicating that the momentum has not fully shifted. Despite the brief recovery, the lack of a clear positive momentum signal from the MACD means that XRP could struggle to maintain its gains.

XRP Price Is Looking For Support

XRP is currently trading at $2.27, down by 5% over the last three days. The altcoin has failed to hold its support at $2.33 and is now approaching the next critical support level of $2.14. If the current trend continues, XRP is likely to test this lower support in the coming days, wiping out some of the recent gains and causing further delays in any recovery.

The ongoing selling pressure from whales, combined with the bearish momentum indicators, strengthens the likelihood of a further decline. If XRP fails to reclaim $2.33 as support, it could fall further, dragging the price down to $2.14 and even lower, impacting investor confidence.

On the other hand, if XRP can reclaim $2.33 as a support level, the altcoin could reverse its trend and attempt to recover some of the recent 22% losses. If this occurs, XRP could target $2.60, which would invalidate the bearish thesis and provide a glimmer of hope for a continued rally.