XRP has faced significant selling pressure, declining by approximately 3% in the last 24 hours to trade around $2.08. This drop occurred despite large-scale token movements by major holders and a period of eased geopolitical tensions following news of a ceasefire between Iran and Israel.
Market analysts are closely monitoring the $2.08–$2.09 support level, as a break below could signal further downside toward the $2.00 or even $1.91 thresholds. The token's inability to sustain momentum above key resistance levels has reinforced a bearish technical pattern.
Key Factors Behind XRP’s Decline
Major Whale Transfers Intensify Selling Pressure
Significant XRP movements contributed to market uncertainty. Reports indicated that Ripple transferred $439 million worth of XRP to an unknown wallet, sparking speculation about potential exchange distributions. Additionally, other large holders moved $58 million in XRP to centralized trading platforms, raising concerns about impending sell-offs or internal reallocation.
These transactions amplified existing fears among traders, particularly amid a lack of positive catalysts. The concentration of selling between 12:00 and 16:00 UTC, with volumes exceeding 114 million XRP, indicated heightened market activity and sentiment shift.
Legal Setback Adds to Bearish Sentiment
A recent court ruling denied a proposed settlement between Ripple and the U.S. Securities and Exchange Commission (SEC). U.S. District Judge Analisa Torres rejected a joint motion for a reduced penalty, reintroducing regulatory uncertainty around XRP.
This legal development quickly impacted market sentiment, with traders reacting by accelerating sell-offs. The decision overshadowed previous optimism regarding Ripple’s regulatory progress and highlighted ongoing litigation risks for XRP investors.
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Technical Resistance and Pattern Formation
XRP has repeatedly failed to break above the $2.17–$2.18 resistance zone. This price level has solidified as a strong barrier, contributing to a descending channel pattern observed on daily charts. The token’s inability to reclaim higher levels has kept it confined within a narrowing range, increasing the likelihood of a decisive breakout—either upward or downward.
Despite a brief recovery to $2.105, low trading volume toward the end of the session suggested dwindling buyer interest. Without renewed bullish momentum, XRP remains vulnerable to further declines.
Current Market Context and Volatility
XRP’s 30-day realized volatility has decreased to 44%, its lowest level since November 2024. While this points to a calmer market, historical patterns suggest that periods of low volatility often precede significant price movements.
The token has traded between $2.00 and $2.60 since March, despite the launch of XRP futures on the CME and ongoing discussions about a potential XRP ETF. Traders are awaiting a clear directional signal before committing to larger positions.
Frequently Asked Questions
Why did XRP price drop despite whale transfers?
Whale transfers often signal potential selling activity or internal repositioning rather than accumulation. In this case, large movements to unknown wallets and exchanges created uncertainty, leading to increased selling pressure.
What does the rejected settlement between Ripple and the SEC mean?
The court’s rejection reintroduces regulatory ambiguity, delaying the resolution of a long-standing legal dispute. This decision reinforces caution among investors and may prolong negative sentiment toward XRP.
What are the key support levels for XRP?
The immediate support lies near $2.08–$2.09. If this level breaks, the next significant supports are at $2.00 and $1.91. Traders are closely watching these thresholds for potential trend shifts.
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How does low volatility affect XRP’s price action?
Low volatility often indicates consolidation before a major price move. While the market appears calm, a surge in volatility could lead to a strong upward or downward breakout in the near term.
Could geopolitical events influence XRP’s performance?
While broader market sentiment improved due to geopolitical developments, XRP’s underperformance highlights its sensitivity to token-specific factors like regulatory news and whale activity rather than macro trends.
What is the significance of the descending channel pattern?
A descending channel typically suggests a bearish trend. For XRP to reverse this pattern, it would need to break above the channel’s upper boundary with strong volume, which hasn’t occurred yet.