Key Insights:
The decline of XRP (XRP) towards $2.80 was preceded by significant transfers from major holders, leading analysts to predict a possible deeper correction in price.
Whale Activity Increasing
XRP whales, or those holding substantial quantities of tokens, have ramped up their selling as the price fell below $3.
Related: Ripple to introduce RLUSD stablecoin in Bahrain through new partnership
Based on an analysis of XRP Whale Flow data, utilizing a 30-day moving average, CryptoQuant analyst Maartunn indicated that $50 million of XRP is moving out of whale wallets each day.
He further noted:
“Selling pressure continues.”
This coincides with an increase in XRP supply on centralized exchanges in late September and early October, as Glassnode data reveals.
This “strongly indicates that whales are preparing for a significant sell-off,” stated trader CryptoOnchain in a recent analysis, adding:
“The data indicates immense selling pressure, suggesting a significant risk of a sharp correction. Conditions seem ripe for a substantial price drop.”
This trend may continue to put pressure on XRP’s price in the upcoming weeks, especially as market fear rises, reminiscent of levels seen during the sell-off following President Donald Trump’s tariff announcements in April.
XRP’s Descending Triangle Signals $2.20 Target
Trader Peter Brandt highlighted XRP as a “short candidate” should it complete a descending triangle formation.
Brandt’s technical viewpoint suggests increased downside risk if the price falls below the triangle’s support line at $2.75. He remarked:
“$XRP is among my short candidates, but this is contingent on the completion of the descending triangle.”
The projected target of the pattern, determined by adding the triangle’s height to the breakout point, stands at $2.20, indicating a 22% decrease from the current price.
As reported by Cointelegraph, the range between $2.75 and $2.80 remains a crucial support area for XRP, with maintaining this level essential to prevent further losses.
At the same time, optimism regarding the approval of an XRP ETF lingers. Market commentator XRP Update mentioned that the US Securities and Exchange Commission might greenlight an XRP ETF by October 18, adding:
“This could mark a pivotal moment for institutional adoption and market credibility.”
Such developments might assist the bulls in regaining traction, although a pullback following the news is also conceivable, particularly if whales leverage it as an opportunity to exit.
This article does not provide investment advice or recommendations. All investment and trading activities carry risk, and readers should perform their own research before making decisions.
