Major holders of XRP have dumped more than 100 million tokens over the past 10 days, driving whale holdings to their lowest point since late 2021 as the cryptocurrency struggles to maintain momentum above $2.90. The $300 million sell-off coincides with a failed technical breakout and rising profit-taking activity, raising questions about whether the altcoin can regain investor confidence amid persistent market weakness.
What to Know:
- Addresses holding 100,000 to 1 million XRP sold over 100 million tokens in 10 days, marking the steepest decline in whale holdings in nearly three years.
- The Realized Profit/Loss Ratio reached a two-month high, indicating investors are selling into price strength rather than accumulating positions.
- XRP trades at $2.94 after failing to break above a descending wedge pattern, with analysts watching support at $2.85 and resistance at $3.12.
Whale Holders Retreat From Positions
The recent wave of selling has pushed whale concentration to levels not seen in 34 months. Data from blockchain analytics firm Glassnode shows addresses in the 100,000 to 1 million token range reduced their combined holdings by more than 100 million XRP since late September. The exodus represents roughly $300 million in market value at current prices.
This cohort of holders typically signals institutional or high-net-worth investor activity.
Their retreat suggests growing uncertainty about near-term price action. Market observers view the sustained selling as a shift away from accumulation, with large players apparently seeking to lock in gains or reduce exposure ahead of potential further declines.
The timing coincides with XRP's inability to establish a clear upward trend. After a brief rally attempt earlier this month, the cryptocurrency failed to break out of its technical pattern.
On-Chain Metrics Signal Bearish Positioning
The Realized Profit/Loss Ratio, which measures the aggregate profit or loss of all tokens moved on-chain, has climbed to its highest level in two months.
The metric's rise indicates that investors are choosing to sell during recent price upticks rather than holding for additional gains. This behavior typically emerges when market participants expect limited upside potential.
Profit-taking at current levels reflects a cautious stance among traders.
When the ratio spikes, it often precedes periods of consolidation or decline, as the supply of sellers outweighs new buying interest. The combination of whale selling and elevated profit realization creates headwinds for any recovery attempt.
Short-term holders appear to be leading the exit. This group tends to react quickly to price movements, amplifying volatility in both directions.
Without a reversal in sentiment or renewed demand from institutional buyers, the technical structure remains fragile.
Price Action Tests Key Support Levels
XRP currently trades at $2.94, hovering near a level that must hold to prevent further deterioration. The cryptocurrency attempted to break above a descending wedge formation but lacked the momentum to sustain the move. Technical traders watching the chart point to $2.85 as the next significant support zone if selling pressure intensifies.
A breach below that level could trigger additional liquidations from leveraged positions. Traders using stop-loss orders below $2.85 would likely accelerate any downward move. The altcoin has shown limited ability to attract buyers at higher prices, with volume declining during recent attempted rallies.
However, a shift in market conditions could alter the trajectory. A confirmed move above $3.12 would open the path toward $3.27 in the near term. Analysts suggest that breaking through resistance at those levels could spark a rally toward $3.61, representing a 19% gain from current prices and potentially invalidating the bearish outlook.
The cryptocurrency's performance depends on whether broader market sentiment improves and whether whales reverse their selling trend.
Understanding Key Cryptocurrency Metrics
The Realized Profit/Loss Ratio compares the amount of profit locked in through on-chain transactions against losses realized by sellers. When the ratio rises, it indicates more investors are choosing to sell at a profit, which can signal either healthy profit-taking or bearish positioning depending on the context. A descending wedge is a technical chart pattern where price moves within two converging trendlines that slope downward, often considered a bullish reversal pattern if the price breaks upward through the upper boundary.
Whale addresses refer to wallets holding significant amounts of a cryptocurrency. In XRP's case, addresses holding between 100,000 and 1 million tokens represent substantial capital that can influence market dynamics through large buy or sell orders.
On-chain data comes directly from blockchain transaction records and provides insight into actual token movements, as opposed to exchange-based trading data.
Closing Thoughts
The convergence of declining whale holdings, elevated profit-taking metrics and failed technical breakouts leaves XRP in a precarious position heading into October. Whether the cryptocurrency can stabilize above $2.85 or faces additional downside will depend on both broader market conditions and any shift in large holder behavior.