XRP whales have offloaded around $1.91 billion worth of tokens in the past month, just before the U.S. Securities and Exchange Commission (SEC) is expected to decide whether to continue its appeal against Ripple.
This heavy selling happened while XRP was trading between $2.28 and $3.54. Since July 9, major XRP holders have moved or sold roughly 640 million tokens. However, not all these transfers are confirmed sales. Some of them may just be internal reshuffling within wallets. But analysts say this outflow indicates a decline in confidence among large investors. The lack of accumulation by whales is seen as a negative sign for XRP’s price stability.
This is the second major whale dump in a year. Between November and January, XRP jumped from $1.65 to $3.27. Despite this, whales still offloaded large quantities, showing a pattern of selling into rallies.
Analysts Warn of a Possible 30% Crash
Crypto analysts are raising concerns that XRP could face a sharp correction. One risk is that once XRP goes beneath the important support level of $2.65, it may plummet another 30%, potentially to $2.06. This has been an important area in the past, and going below it would spark additional fear-driven selling. Right now, XRP is barely managing to remain above the $2.65–$2.70 level.
This forecast relies on bearish divergence in the XRP chart, wherein price continues to rise, yet momentum is decreasing. This trend tends to indicate that a price reversal or correction is imminent.
Crypto analyst “The Enigma Trader” explained that XRP must experience daily whale inflows of 5 million tokens or more to gain strength. That hasn’t occurred so far, indicating that a trend reversal is not probable in the near future unless large investors resume buying.
SEC’s Decision Could Shape XRP’s Future
The SEC stands to decide whether or not it will abandon its long standing litigation against Ripple. If the SEC abandons the case, it would potentially bring long-overdue clarity to the status of XRP in the U.S. The central question is whether or not XRP should be regulated as a security. That uncertainty has been among the largest of the impediments keeping XRP back for years.
If XRP drops below the support level of $2.65, it could fall to $2 or even lower, possibly hitting the 50-week EMA at $2.06. The upcoming few days will be decisive as investors wait for both regulatory updates and market cues.
Also Read: Ripple Vs SEC: Will the August 15 Deadline Bring Closure?
