The recent XRP price rally has encountered significant resistance, with the cryptocurrency failing to sustain momentum toward the $3 mark. Analysis of on-chain data reveals a concerning trend of substantial sell-offs by large-scale investors, commonly referred to as whales, over the past two months. This persistent selling pressure has created headwinds for XRP’s valuation, increasing the likelihood of a downward correction.
Concurrently, network metrics indicate a notable reduction in activity on the XRP Ledger. The decline in transactional volume and overall engagement suggests waning retail and institutional participation, further compounding the bearish sentiment. This combination of whale distribution and diminished network utility presents a challenging environment for price appreciation.
Market analysts are now monitoring key support levels, with technical indicators pointing toward a potential retracement to the $2 region. While the broader cryptocurrency market continues to exhibit volatility, XRP’s specific on-chain dynamics and investor behavior are painting a cautious short-term outlook. Traders and investors are advised to closely watch order book depth and large wallet movements for signals of either continued distribution or a potential reversal in this trend.
