XRP Price Alert: Whales Dumping as Legal Turmoil Heats Up
The XRP market is on high alert. Over the past few weeks, whales, the term used for large cryptocurrency holders, have started unloading huge amounts of XRP. This move is happening just as the legal story around Ripple takes a major turn, creating a perfect storm of uncertainty for investors.
For anyone watching the crypto market, what is happening with XRP right now is more than just another price swing. It is a combination of big-money moves, shifting investor sentiment, and a legal chapter that may be closing but still leaves questions about the future.
Whale Selling Hits $1.9 Billion
Between July 9 and the first week of August, whale wallets transferred around 640 million XRP to exchanges. At current market prices, that’s roughly $1.9 billion worth of XRP being moved into positions where it could easily be sold.
These transfers matter because whale activity often signals what the biggest and most influential players think is coming next. Historically, when whales move this much XRP to exchanges, it often precedes a drop in price. A large supply entering the market can trigger panic selling among smaller investors, driving prices down even faster.
On-Chain Data Points to Trouble
On-chain metrics support the concern. The 90-day moving average of whale flows to exchanges has turned strongly negative, showing that more XRP is being sent to exchanges than withdrawn. This same pattern was seen earlier in the year before XRP’s price tumbled from highs above $3.27 down toward $1.70.
According to analysts at CryptoQuant, unless whales start adding XRP to exchanges at a pace of at least 5 million tokens per day, the market is unlikely to see strong upside momentum in the near term.
Why is this important? Because without whale support, even steady buying from retail investors may not be enough to offset the pressure from such large-scale selling.
Price Testing Critical Levels
Right now, the most important number for XRP traders to watch is $2.65. This price level has acted as a key support zone in recent months. If it holds, XRP has a chance to stabilize and possibly rebound. If it breaks, the next support is around $2.06, which lines up with the 50-week exponential moving average.
At the same time, resistance remains firm near $3.29. Every time XRP has tried to push above this level recently, heavy selling has knocked it back. The combination of whale selling and technical resistance makes it hard for XRP to break out into a stronger uptrend.
Legal Chapter Closing but Sentiment Still Fragile
For years, XRP has been tied up in a lawsuit with the US Securities and Exchange Commission. In a major shift, both Ripple and the SEC have dropped their appeals, effectively ending the case. This leaves the earlier court ruling intact, which had partially favored Ripple.
On paper, this is great news for XRP. It removes a huge cloud of legal uncertainty that has hung over the project for years. However, the timing of the whale selling suggests that some large holders may not see this as an immediate trigger for a rally. They could be anticipating a slower recovery or waiting for more bullish market conditions before buying back in.
What Are Crypto Voices Saying?
Conversations online underscore the mixed sentiment:
Zhao Lusi tweeted:
“Watching XRP whale flows closely. This could set the tone for price direction near legal clarity.”
Bitt_Belle added:
“XRP whale flows are showing a red wave ; could be the early warning of deeper correction.”
Onyx Flux commented:
“Support at $2.65 is key. Lose that, and things get much uglier for XRP.”
Smaller Buyers Step In
Despite the large sell-offs from whales, there is some buying activity from short-term holders, those who typically hold their XRP between one week and three months. On-chain data shows that since early July, these smaller investors have been accumulating tokens.
While this does provide some level of price support, it is unlikely to counterbalance billions of dollars’ worth of selling pressure from whales. For the market to turn decisively bullish, the buying side would need significant reinforcement, possibly from institutional investors encouraged by the resolved lawsuit.
What Could Change the Trend
A few developments could tip the balance back toward the bulls:
- Whales halting large transfers to exchanges and resuming accumulation
- Support at $2.65 holding firm, preventing panic selling
- Fresh institutional interest sparked by the legal clarity
- A broader crypto market rally, lifting sentiment across the board
Until at least some of these occur, XRP is likely to remain under pressure.
Summary
The Bigger Picture
The XRP story right now is a reminder of how much influence whales have over crypto markets. It also shows that even when legal wins arrive, market psychology does not change overnight. Big holders may still take profits if they think prices are stretched or if macroeconomic signals suggest better opportunities elsewhere.
For everyday traders and investors, the lesson is clear: keep an eye on whale behavior, watch the key technical levels, and consider the wider context beyond a single headline. The end of the SEC case is a milestone, but in the short term, the chart still matters.
Conclusion
In just a few weeks, $1.9 billion worth of XRP has moved from whale wallets to exchanges. This is happening in the shadow of a historic legal resolution that should, in theory, boost confidence. Yet the technical picture shows strong resistance ahead and critical support that must hold to avoid a deeper drop.
FAQ’S
Analysts see potential for growth, but price surges depend on market sentiment, adoption, and ongoing legal outcomes.
It’s highly unlikely based on current market trends and supply, though long-term growth is possible.
Reaching $100 would require massive market capitalization, making it improbable in the near term.
No credible projections suggest XRP could reach $1,000 given current market conditions and total supply.
Some bullish forecasts consider $20 possible in the long term, but it depends on adoption and favorable regulations.
Predictions vary widely, but some analysts expect anywhere from $5 to $15 if adoption increases.
XRP serves a different purpose than Bitcoin, so while it could grow significantly, it’s unlikely to replace BTC.
Long-term predictions are speculative, but some see potential in the range of $20 to $50 depending on adoption.
If adoption continues and market conditions remain favorable, Ethereum could reach $10,000 in the long run.
Disclaimer
This is for information only, not financial advice. Always do your research.