XRP Faces Critical Test After 10% Drop

XRP's recent rally to $3.65 has met significant resistance, with the digital asset experiencing a 【10%】 price drop this week. The correction marks the steepest single-day decline since April, as market-wide liquidations spread to altcoins. TradingView charts show XRP currently testing crucial support near the $3 psychological level.

Whale Movements Trigger Market Turbulence

Blockchain analysts identified suspicious activity from a wallet linked to Ripple co-founder Chris Larsen, with over 【50 million XRP】 moved to exchanges recently. This whale activity coincided with:

• 【$86 million】 in long position liquidations on Binance
• 16.8% drop in futures open interest
• Negative shift in 90-day whale flow metrics

——The third-largest XRP liquidation event this year suggests institutional players are taking profits—— noted Darkfost, a prominent crypto analyst.

Technical Outlook: Key Levels to Watch

The four-hour chart reveals two critical scenarios:

1. Bullish case: Holding above $2.95 could establish a local bottom, with breakout potential above $3.25
2. Bearish case: Breakdown below $3 might target support between $2.66-$2.86

Market structure remains bullish on higher timeframes, but the $2.64 level represents make-or-break support. This former resistance zone from Q2 could transform into strong demand if tested.

Contradictory Signals Emerge

Interestingly, while whale flows turn negative, on-chain data shows:

• 2,743 wallets now hold >1 million XRP
• 47.32 billion tokens concentrated in large addresses
• This represents 4.4% of circulating supply

The divergence between whale accumulation and recent selling pressure creates what analysts call a "cognitive conflict point" in XRP's market dynamics.

Market Psychology at Play

Wednesday's 10.33% drop triggered panic selling among retail investors, yet institutional players appear divided. CryptoQuant data reveals:

• Whale accumulation trend began in early May
• Positive flow preceded XRP's major rally
• Current reversal suggests potential local top

——This correction could represent healthy consolidation after 67% quarterly gains—— remarked one trading desk manager, requesting anonymity.

What Comes Next for XRP?

Market participants should monitor:

• Exchange inflows from known whale addresses
• Futures funding rates across major platforms
• BTC dominance trends affecting altcoin liquidity

As of press time, XRP trades at $3.02, with the next 48 hours likely determining whether bulls can defend critical support or face further downside.