XRP is finding it challenging to maintain the $1.40 support level due to ongoing selling pressure that negatively affects market sentiment. The price movement remains unstable, reflecting general uncertainty in the cryptocurrency market. Bitcoin’s trading has been range-bound, providing little clarity in the short term. This lack of decisive market momentum makes altcoins, including XRP, particularly susceptible to underperformance without a significant macro trend to guide them.
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Recent market developments have shed light on exchange activity. Binance received a significant inflow this week, solidifying its reputation as a leading platform for high-volume transactions. On-chain data indicates that over 31 million XRP were sent to the exchange in a single day, raising concerns about potential short-term supply issues.
Large inflows to exchanges often signal upcoming selling activity, although they don’t guarantee immediate liquidation. These movements may reflect various strategies like repositioning or liquidity management. However, in a market with cautious sentiment, such inflows can heighten uncertainty surrounding XRP’s price stability.
Large Holder Inflows Raise Short-Term Sell Pressure Concerns
Analysis of on-chain data reveals that these recent inflows were predominantly driven by larger holders, suggesting that retail activity was minimal. Wallets holding less than 1,000 XRP contributed only 6,543 tokens, while those with 1,000 to 10,000 XRP added 73,630. The largest transfers came from holders with over 10,000 XRP, with significant contributions from higher tiers: 10,000–100,000 holders moved 2,938,809 XRP, while those with 100,000–1 million and over 1 million transferred 14,236,825 and 14,494,865 XRP, respectively.
This distribution underscores that a substantial portion of the 31 million XRP inflow originated from major participants. At current price levels, these transfers represent nearly $45 million in potential selling pressure. While inflows do not automatically lead to immediate sales, they do increase the volume of tradable assets available on the order books.
In an environment already marked by low momentum and broader uncertainty, this concentration of large-holder deposits merits careful observation. If these inflows result in sustained selling, XRP may experience renewed downward pressure, making it difficult for the asset to recover from its current corrective trend in the near term.
XRP Tests Structural Support As Downtrend Persists
XRP is currently under significant technical pressure, with the 3-day chart indicating a corrective trend that initiated after the 2025 high of over $3.50. Following that peak, price actions have exhibited a pattern of lower highs and lower lows, indicating a weakening bullish momentum. The recent decline toward the $1.30–$1.40 range places XRP at a critical support zone that has previously served as a launchpad during expansion phases.
Technically, XRP is trading below both short- and medium-term moving averages, which are now showing a downward trend and acting as resistance. The long-term average, while still upward sloping, has flattened, reflecting a diminished macro momentum. Without reclaiming the $1.80–$2.00 range with substantial volume, any upward attempts will likely face resistance near these moving averages.
Overall, volume has decreased compared to previous rally phases, suggesting that speculative participation has waned. Nonetheless, spikes in volume during selloffs highlight active distribution rather than passive fluctuations. A decisive failure at the $1.30 support area could prompt a deeper retracement toward the $1.10–$1.20 range. On the other hand, a stabilization above current levels might allow for a short-term rebound, although the broader market structure remains fragile.
Featured image from ChatGPT, chart from TradingView.com
