XRP is currently navigating a precarious market phase, with recent whale activity signaling potential further downside. After a promising surge to new all-time highs in late July, the digital asset's momentum has softened, prompting caution among market observers.
Whale Activity Signals Renewed Distribution
Recent data from CryptoQuant highlights a stark warning for XRP, as its 90-day moving average of whale flow has sharply turned negative. This indicates a renewed period of distribution from large wallets, a pattern reminiscent of past instances earlier this year where sustained whale outflows preceded multi-week price corrections. Without a strong reversal marked by consistent accumulation—specifically, a daily net inflow of over 5 million XRP—the market may remain structurally weak.
Key Price Levels to Watch
Currently trading around $2.98, XRP has pulled back from its late July peak above $3.60. Despite this correction, the asset found dynamic support near its 50-day Simple Moving Average (SMA) at $2.71, and it remains above its 100-day ($2.49) and 200-day ($2.45) SMAs, maintaining its long-term bullish posture. The cryptocurrency's structural integrity hinges on its ability to hold above the crucial $2.70–$2.80 support zone. A definitive breach below this range could expose XRP to further downside. On the upside, immediate resistance is found around $3.10, a level that has proven difficult to reclaim since the recent pullback. The coming days are vital, as investors watch whether long-term support endures or if escalating distribution pressure signals further volatility.
