XRP Whales Sell 140M Tokens as Price Nears Resistance

As XRP climbed from a seven-day low of $2.34 to trade around $2.62, large holders began systematically reducing their exposure in a move that has historically preceded price reversals. According to data shared by prominent analyst Ali Martinez, wallets holding between 1 million and 10 million XRP sold over 140 million tokens during the price ascent. This substantial sell-off occurred precisely as XRP showed strength, gaining 8% over the past week and briefly surging 13% in recent days before stabilizing.

The pattern of whale distribution during rallies has proven to be a reliable warning signal in XRP’s trading history. Martinez’s analysis revealed a steady decline in large wallet balances as XRP pushed higher, suggesting that sophisticated investors are using price strength to take profits rather than accumulating for further gains. This behavior contrasts sharply with retail investor sentiment and raises fundamental questions about the underlying strength of the current move.

Multiple technical analysis tools are converging to suggest that XRP may be approaching a significant turning point. The TD Sequential indicator, which has accurately predicted several short-term reversals in recent months, has flashed a sell signal on XRP’s daily chart. While this signal doesn’t guarantee a reversal by itself, its track record in XRP’s recent price action makes it particularly noteworthy for traders.

Meanwhile, momentum indicators are showing clear signs of exhaustion. The Stochastic RSI is displaying severely overbought readings, with both %K and %D lines above 94 and beginning to form a bearish crossover. This configuration has frequently marked short-term turning points in XRP’s recent chart history. Additionally, XRP is testing the upper Bollinger Band near $2.69 after moving off the lower band earlier this month, entering a zone where previous advances have typically paused or reversed.

Analyst Man of Bitcoin has identified $2.53 as a crucial support level to monitor, noting that a break below this area could signal the beginning of a larger corrective move. This technical assessment aligns with the broader analytical framework suggesting XRP remains within a possible Wave 4 structure, as recently reported by CryptoPotato. The analysis indicates that unless XRP can decisively clear the $2.82 resistance level, the cryptocurrency may experience one more downward move before attempting a broader breakout.

The current technical setup presents a challenging environment for XRP bulls. With tight Bollinger Bands suggesting a lack of strong volatility expansion and multiple indicators pointing to overbought conditions, the path of least resistance appears to be downward in the near term. The combination of whale selling, bearish technical signals, and key resistance levels creates a perfect storm that could trigger a significant pullback from current levels.

Market participants are now closely watching how XRP behaves around the $2.69 resistance level and whether the $2.53 support holds. A failure at either of these critical junctures could validate the bearish signals emerging from both on-chain whale activity and technical analysis, potentially leading to a retest of lower support levels and confirming the pattern of distribution by large holders.