XRP has come under renewed selling pressure, sliding below a key technical level even as trading activity picks up. The token’s recent decline has left traders questioning whether this divergence signals a short-term shakeout or the calm before a rebound.
XRP Price Falls Below 200-Day EMA
At press time, XRP is trading at $2.39, down 0.97% in the past 24 hours and nearly 5.4% over the past week. The drop pushed prices below the 200-day Exponential Moving Average (EMA) at $2.60, a level often seen as a critical support for long-term trends.
Despite the downturn, trading volume has jumped nearly 5%, suggesting that investor activity remains high. However, analysts warn that the increase in volume may be driven by profit-taking or risk-off behavior rather than fresh buying. In many cases, a rise in volume during a price drop indicates heightened selling pressure a classic sign of market uncertainty.
Ripple Co-Founder’s Token Sale and Market Headwinds
Adding to the bearish sentiment, Ripple co-founder Chris Larsen reportedly sold $120 million worth of XRP, which appears to have shaken market confidence.
Broader macroeconomic factors are also weighing on crypto markets. Ongoing geopolitical tensions between the U.S. and China have triggered a wave of risk aversion after former President Donald Trump hinted that an anticipated meeting between both leaders “may not happen.”
Meanwhile, the Crypto Fear and Greed Index has fallen from 37 to 29, signaling growing investor fear across digital assets.
Compounding the uncertainty is the U.S. government shutdown, which has delayed the approval of over 16 crypto ETF filings, including three XRP-related ETF applications already past their initial deadlines. These delays have dampened sentiment around institutional inflows into the XRP ecosystem.
Whale Accumulation and Oversold Indicators Offer Hope
While XRP’s short-term outlook remains cautious, on-chain data shows signs that large investors, or “whales,” may be positioning for a potential rebound. In recent days, whales have accumulated over 30 million XRP, suggesting renewed confidence among high-capital holders.
This kind of accumulation often occurs before market reversals, as experienced investors tend to buy when prices are undervalued or nearing a potential bottom.
Additionally, the Relative Strength Index (RSI) has dipped to 39, approaching the oversold region. Historically, this level has preceded short-term price rebounds. A recovery in RSI above 50, coupled with rising trading volume, could indicate a shift back toward bullish momentum.
Key Levels to Watch
Technically, XRP faces strong resistance in the $2.45–$2.50 range. A daily close above $2.50, supported by sustained volume growth, would signal renewed buying strength and could confirm the beginning of a trend reversal.
If that happens, analysts say XRP could regain momentum toward the $2.70–$2.80 zone, marking the early stages of a potential recovery rally.
Until then, traders are watching closely to see whether whale accumulation and improving technical indicators can offset the ongoing macro and regulatory uncertainty.
The Bigger Picture
Despite short-term volatility, Ripple’s upcoming $1 billion treasury initiative and the anticipated resumption of U.S. government operations may breathe new life into the market. If the SEC accelerates delayed ETF approvals, XRP could benefit from renewed institutional demand.
For now, however, the market remains in a tug-of-war between rising participation and persistent bearish sentiment leaving traders to decide whether this is the final shakeout before recovery or the start of another leg down.
