XRP at a Crossroads, Whale Selling and Key Levels Shape Market Outlook

• XRP must remain above $2.60 for stability, with $2.40 being a key level and $3.10 showing bullish momentum.
• Whale outflows totaled more than -180 million in late 2024, around a price spike, affecting liquidity and volatility.
• Fibonacci levels and trendlines signal possible XRP bounces with $2.6800 and $3.4000 as levels of major resistance.

XRP’s price action remains a point of fascination for traders as it navigates key technical levels. Whale activity has characterized much of the recent trade, which impacts volatility and liquidity in the price.

XRP price action remains at the forefront of attention as it probes significant resistance and support with intense whale pressure. XRP must remain above $2.60, the $2.40 being of particular importance to market analyst EGRAG CRYPTO. A close and confirmation above $3.10 could be seen as strong buying pressure. Recent price action saw the market have an ABC correction, a replay of the classic pattern. Trendlines and moving averages form technical indicators that establish the structure of the asset.

Key Support and Resistance Levels

EGRAG CRYPTO’s analysis identifies major support and resistance zones. The $1.6700 level, labeled as the “Last Line of Defense,” holds historical significance. Breaking below this point could trigger further downside pressure. Maintaining this level may lead to price recovery.

The 34-day moving average (MA) and 21-day exponential moving average (EMA) provide additional support and resistance points. The resistance zone, termed “The Arch Guardian,” aligns with the $3.4000 level, which has previously acted as a barrier. Price movements continue forming a descending triangle pattern, signaling possible consolidation before a breakout.

Recent price action shows XRP attempting a rebound from $1.9600, indicating a potential bullish structure. Fibonacci retracement levels suggest key reaction zones, with $2.3000 serving as a pivotal point. If buyers sustain momentum, XRP could test higher resistance levels near $2.6800 and $3.4000. However, failure to reclaim support zones may lead to retesting lower price levels.

Whale Activity and Market Impact

Miles Deutscher reports that XRP whales have been aggressively selling holdings after a 500% price surge since November. Whale flow data, measured using a 30-day moving average (30DMA), reveals shifting market dynamics. Between mid-2022 and mid-2023, whale activity remained balanced, with inflows and outflows stabilizing price movements.

Market watchers note that, in late 2024, negative whale flow surged past -180 million, coinciding with a sharp price increase. Large holders exited positions while market demand sustained upward momentum. The total whale flow aligns with historical accumulation and distribution phases, significantly impacting liquidity. The final data point shows continued high negative whale flow, keeping price volatility elevated.