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Key Takeaways:
- Whales dumped $6B in XRP, pushing the price down over 20% since mid-July.
- A death cross and loss of $2.80 support could send XRP to $2.48.
- Some traders are buying the dip, betting on a rebound near key support.
Ripple’s XRP continues to struggle under sustained bearish pressure, with analysts warning that the downtrend may not be over yet. After peaking near $3.60 in mid-July, XRP has dropped more than 20%, primarily due to aggressive selling by whale investors.
Whale Distribution Deepens the Decline
According to analyst Ali Martinez, XRP’s recent sell-off was largely driven by whales holding between 1 million and 1 billion tokens. Over the past three weeks, these large holders dumped nearly 2 billion XRP, reducing their holdings from 10 billion to 8 billion — a staggering $6 billion in value offloaded.
The selling trend hasn’t slowed as of press time, suggesting continued downward pressure. Compounding the bearish sentiment is a newly triggered MVRV (Market Value to Realized Value) “death cross” — a historical sell signal. When this signal flashed in late March, XRP fell over 30%, hinting that further downside could be in play.
Meanwhile, the MVRV ratio just flashed a death cross, another sign that a steeper correction could be underway for $XRP.https://t.co/Jl1aV6ny5Q
— Ali (@ali_charts) August 5, 2025
Key Support Levels to Watch
Currently trading around $2.90, XRP risks a deeper correction. Martinez highlights $2.80 as an immediate support level. However, stronger on-chain support lies around $2.48 — a zone where many current holders accumulated their tokens.
This level also aligns closely with the 200-day Simple Moving Average (SMA), making it a critical floor. A breakdown below $2.80 could therefore trigger another 15% drop, especially if broader crypto market sentiment remains weak.
Also Read: BDACS Launches XRP Custody in South Korea, Boosting Ripple’s Institutional Adoption
Mixed Signals from Derivatives Traders
Despite the bearish setup, some traders are cautiously optimistic. Binance derivatives data from CoinGlass shows that long positions have risen from 64% to 69% in the last two days. This increase comes after a sharp drop in long exposure from 79% earlier in July, suggesting that some smart traders are positioning for a rebound.
XRP’s price remains under pressure due to whale selling and bearish on-chain indicators. While a short-term bounce is possible, a solid support base may only form near $2.48 if $2.80 fails. Traders should closely monitor these levels as macro factors and Bitcoin price action continue to influence sentiment.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
