On-chain data indicates a significant trend among XRP whales, revealing an extensive offloading of holdings that casts a bearish shadow over the altcoin’s future. Currently, XRP is grappling to maintain its position above the critical psychological threshold of $3, incurring the risk of a downturn to lower price levels.
Recent analysis from Santiment shows that since early September, XRP whales have collectively disposed of approximately 160 million coins, valued at around $480 million. Initially, on September 4, their combined holdings peaked at roughly 6.95 billion coins. However, as of now, that figure has diminished to approximately 6.77 billion. Notably, this trend is evident across various whale classifications—those possessing between 1 million and 10 million tokens, as well as groups holding from 10 million to 100 million and from 100 million to 1 billion.
The 10 million to 100 million XRP whale cohort began offloading their assets last month, leading to a decline from 8.1 billion coins to the current level of about 7.77 billion. Meanwhile, whales holding between 100 million coins and 1 billion coins started their sell-off back in July, reducing their holdings from approximately 10.83 billion to 7.94 billion by August. However, since that point, their positions have remained unchanged, with this segment of whales choosing to remain inactive in the market.
This trend of selling could spell further declines for XRP’s price, especially given that these transactions are taking place in the context of significant market events, such as anticipated Fed rate cuts and the launch of the first spot XRP ETF. Such developments may lead to increased speculation; the possibility of these events resulting in a “sell the news” scenario is causing concern that prices may fall sharply once these catalysts occur.
Adding to the apprehension surrounding XRP’s trajectory, crypto analyst Egrag Crypto has projected that a bearish cross may be imminent for the altcoin. He posits that XRP could plunge to $2.65 despite the favorable conditions expected from the Fed rate cut. Egrag highlighted that market reactions often defy expectations; therefore, rather than rallying post-rate cut, XRP may instead face a drop.
To avert this bearish outcome, the analyst suggests XRP needs to close above the resistance levels of $3.07 and $3.13. Should it achieve these price points, Egrag believes the altcoin could gain the momentum needed to potentially rise to $3.7.
As it stands, XRP is trading around $3, showing a slight increase in the last 24 hours per data from CoinMarketCap. However, the prevailing sentiment among whale activity and market analysis suggests that caution may be warranted as the altcoin navigates a tumultuous landscape.
