XRP has slipped under the $3 psychological mark, weighed down by heavy whale selling that saw nearly half a billion tokens offloaded in just 10 days. The move has raised fresh concerns about whether the market is setting up for a deeper correction.
XRP Price Action
As of August 20, XRP was trading at $2.88, down about 4% in 24 hours. The token has now lost:
- 10% over the past week,
- 17% in the past month, and
- is trading nearly 20% below its July all-time high of $3.65.
Whale Selling Adds Pressure
Analyst Ali Martinez reported that whales have dumped around 470 million XRP over the past 10 days. Such large-scale liquidations often slow bullish momentum, particularly in a market already showing signs of fatigue.
Despite this, the majority of XRP holders remain profitable. Glassnode data shows that more than 93% of XRP supply is still in profit, with average profit margins holding above 90%.
However, this unusually high profitability suggests most of the good news may already be priced in especially after Ripple’s years-long battle with the SEC finally came to an end. Analysts warn that such extended profit levels often spark heavier selling when bearish shocks hit the market.
Technical Outlook
The charts paint a mixed picture for XRP:
- Oscillators: The MACD is flashing sell signals, while the RSI sits at 42, showing that XRP isn’t overbought or oversold.
- Short-term trend: XRP remains below its 10-, 20-, and 50-day SMAs and EMAs, pointing to sustained selling pressure.
- Long-term support: The 100- and 200-day moving averages remain in buy territory, suggesting the broader uptrend is still intact as long as XRP holds above key support levels.
Key Levels to Watch
- Bearish scenario: XRP could retest the lower end of its recent range at $2.86, with further downside possibly taking it toward $2.70.
- Bullish scenario: Bulls need to reclaim the $3.00–$3.10 zone to gain traction and open the door for a push back toward $3.30.
While long-term sentiment remains cautiously optimistic, heavy whale selling and cooling momentum hint that XRP may not be out of the woods just yet. Traders will be watching closely to see if the token can stabilize above support or if a deeper correction is on the horizon.
