XRP price has dropped below the crucial $2.00 psychological support level, extending its decline by 23% over the past 11 days and trading near $1.92. This accelerated decline is driven by an abrupt and massive shift in whale behavior, which has amplified market bearishness.
Surge in Whale Distribution and On-Chain Weakness
The primary reason for the price fall is aggressive distribution by large investors:
- ā¢Massive Whale Selling: Addresses holding between 10 million and 100 million XRP, which had been accumulating for over 20 consecutive days, abruptly reversed their stance. They have dumped more than 250 million tokens in the past 48 hours alone, valued at over $480 million. This sudden loss of conviction from major holders removes a crucial source of market strength.
- ā¢MVRV Long/Short Difference Warning: The MVRV Long/Short Difference indicator has slipped below zero for the first time in five months. This indicates that long-term holders have lost profitability, transferring the opportunity for profit-taking to short-term holders. This dynamic increases market volatility, as any modest rebound could be immediately suppressed by short-term holders selling into strength.
Critical Support and Resistance Levels
The loss of the psychological support level reinforces the current bearish sentiment:
- ā¢Critical Resistance: The $2.00 psychological level has been lost and now acts as immediate resistance. XRP must reclaim this level to signal stability.
- ā¢Upside Targets: A successful recovery above $2.00 could lift the price toward $2.14 and higher, invalidating the near-term bearish thesis.
- ā¢Downside Targets: If whale selling accelerates, the price could fall further toward $1.79 and risks deeper losses beyond that level.
Short-Term and Long-Term Outlook
- ā¢Short-Term Outlook: Bearish. The outlook is highly pressured by heavy whale distribution and the technical indicator warning (MVRV below zero). The immediate inability of buyers to absorb the $480 million sell-off suggests that downward momentum will persist until stability is confirmed.
- ā¢Long-Term Outlook: Recovery momentum is stalled. Without renewed confidence and accumulation from whales, the recovery will be delayed, and the price will likely remain suppressed.
Important Disclaimer
This analysis is for informational and educational purposes only and is based on technical analysis and market data. It is not financial advice, nor should it be construed as a recommendation to buy, sell, or hold any security or cryptocurrency. The cryptocurrency market is highly speculative, volatile, and subject to external factors. Readers must conduct their own comprehensive research (DYOR) and consult with a qualified financial advisor before making any investment decisions.