TLDR
- XRP price is currently testing the $2.00 support level, trading at around $2.08
- Exchange inflows have surged to 55.6 million XRP, suggesting increasing selling pressure
- Ripple whales have sold approximately $800 million worth of XRP since early April
- A large whale recently moved 131 million XRP ($273 million) between wallets in a single transaction
- Technical indicators suggest XRP could potentially drop to $1.90 if the $2.17 resistance level isn’t broken
XRP is facing downward pressure as it hovers around the $2.08 mark on Wednesday. The cryptocurrency has been experiencing volatility alongside other major digital assets including Bitcoin and Ethereum.
The correction comes amid various market factors, with trade tensions between the United States and China being a notable contributor. President Trump’s administration recently banned exports of H20 chips to China, a move expected to impact NVIDIA financially.
U.S. stock markets have also resumed their correction after a week of gains, with futures across major indices showing declines. This broader market sentiment appears to be affecting the crypto space as well.
Whale Activity Raises Concerns
One of the most concerning developments for XRP investors is the changing behavior of Ripple whales. These large holders have reportedly sold approximately $800 million worth of XRP since the beginning of April, according to analyst Ali MartÃnez.
This selling trend began shortly after Ripple CEO Brad Garlinghouse announced that the lawsuit between Ripple and the SEC had effectively ended with both parties dropping their latest appeals. While the SEC has yet to officially confirm this, many industry experts believe it’s just a matter of time.
Whales have sold over 370 million $XRP since the start of the month! pic.twitter.com/KXiCjGHmBM
— Ali (@ali_charts) April 15, 2025
The timing of these sales suggests a classic “buy-the-rumor, sell-the-news” scenario, where gains were driven by speculation about the lawsuit’s conclusion rather than the actual resolution itself.
Adding to the whale activity concerns, a single Ripple whale recently moved 131 million XRP (worth approximately $273 million) between wallets in one transaction. This transfer has sparked speculation about potential selling pressure, though it could also represent an over-the-counter transaction with no immediate market impact.
Exchange Inflows Signal Selling Pressure
Data from CryptoQuant shows a surge in XRP exchange inflows, rising from 28 million on April 8 to 55.6 million on Wednesday. When investors deposit tokens on exchanges, it often signals potential selling pressure, which can drive prices down.
This increase in exchange inflows correlates with a spike in whale-to-exchange transactions, further contributing to the shaky market sentiment surrounding XRP.
Liquidation data from Coinglass provides additional insight, with $5.1 million wiped out in long positions compared to $1.25 million in short positions in a 24-hour period. A negative long-to-short ratio of 0.938 suggests investors prefer to reduce their exposure to XRP, possibly expecting further price retracement.
Technical Analysis and Price Outlook
XRP’s price has been struggling to break above the $2.24 resistance level, formed by the 50-day and 100-day Exponential Moving Averages. If XRP loses its immediate $2.00 support, losses could extend to the 200-day EMA at $1.95 and potentially to the $1.61 support area.
Despite the drawdown, the Moving Average Convergence Divergence (MACD) indicator maintains a buy signal, reinforced by green histograms. The Relative Strength Index (RSI) will be a key indicator to watch for determining XRP’s direction.
Over the last week, XRP price has gained 15%, but recent whale activity has contributed to a 4% drop over a 24-hour period.
Looking ahead, the potential approval of XRP ETF applications remains a key factor that could shape XRP’s price trend in 2025. However, investors should temper their expectations, considering that soon-to-be-sworn-in SEC Chair Paul Atkins might delay the process as he gets acquainted with his new role.
