Preview: "XRP price fell by 10% as whales sold and wider market liquidations spread to the altcoin."
Key takeaways:
-
XRP’s liquidation was the third-largest long liquidation on Binance this year.
-
XRP’s higher time frame trend remains bullish, as bulls aim to defend the $2.95–$3.00 support zone.
XRP
posted its highest daily and weekly close above $3.45 last week, but has dropped nearly 10% in the past few days. XRP’s 10.33% dip on Wednesday marked its steepest daily correction since April 6.
The pullback also triggered a sharp drop in XRP futures open interest (OI) to $9.10 billion from $10.94 billion, down 16.8% since Tuesday. This suggests leveraged traders could be exiting positions or facing liquidations, leading to reduced speculative confidence in the short term.
XRP faces the third-largest liquidation of 2025
XRP’s recent decline appears compounded by bearish whale activity and a surge in long liquidations. Crypto analyst Darkfost noted that a wallet associated with Ripple co-founder Chris Larsen saw major XRP outflows. Reportedly, over 50 million XRP moved, with $140 million sent to exchanges. The pace has picked up significantly since July 15, with 42 million XRP withdrawn on Thursday, though it is still below the 84 million seen last Friday.
The sharp price move triggered the third-largest XRP long liquidation event on Binance this year, and roughly $86 million was wiped out in hours.
Despite the price volatility, Cointelegraph recently highlighted whale accumulation, noting that 2,743 wallets now hold over one million XRP each, amounting to 47.32 billion tokens, or 4.4% of the circulating supply.
However, the tide might be shifting. Data from CryptoQuant shows that XRP’s 90-day whale flow average has turned negative, suggesting large holders could now be offloading. Notably, this metric flipped positive in early May, shortly before XRP’s strong rally, and its current reversal could be an early signal of a local top.
Related: XRP price drops 19% but analysts say it’s a ‘healthy correction’
Can XRP bulls defend this key level?
Despite the recent volatility, XRP’s higher time frame market structure remains intact. Last week’s multimonth high reaffirmed the ongoing bullish trend, even after this week’s 10% pullback. On the four-hour chart, the immediate area of interest lies just above the $3 psychological level, with $2.95 acting as a key liquidity zone that was swept on Thursday’s dip.
If the price breaks above $3.25, it would confirm a bullish market structure shift on the lower time frames, potentially establishing $2.95 as a local bottom. Conversely, if selling pressure continues, XRP may target the next liquidity cluster between $2.66 and $2.86.
Strong support lies at $2.64, a former multi-week resistance level from Q2, potentially flipping into demand. Thus, XRP bulls remain in control unless price breaks below $3.00 and $2.64 in close succession, indicating a possible change in trend structure and extending downside risk.
0 Comments