XRP Slumps 8% as Whales Dump 2.23B Tokens—Will $2 Hold as Key Support?

XRP extended its decline on Tuesday, slipping toward the $2.40 mark as selling pressure from major holders deepened and broader crypto sentiment turned defensive. The token has lost over 5% in 24 hours and nearly 12% in a week, weighed down by renewed risk aversion and aggressive whale activity.

At the time of writing, XRP trades at $2.47, well below its key resistance at $2.72, marking its weakest performance in nearly a month. Analysts note that the pair remains locked within a descending triangle pattern since late July—typically a bearish structure that signals continuation of downward momentum.

Technical readings further reinforce the cautionary tone. The Parabolic SAR indicator shows dotted resistance above recent candles, while the 20-day Simple Moving Average (SMA) continues to slope downward, highlighting sustained bearish control.

Key technical levels:

• Support: $2.39, $2.00, $1.96
• Resistance: $2.72, $2.85, $3.00

The upcoming sessions may test buyers’ conviction around the $2.00–$2.39 demand zone, which has historically triggered short-term rebounds.

Whales Offload Billions, Spooking Investors

According to on-chain data, large holders—commonly referred to as whales—offloaded approximately 2.23 billion XRP since Friday, sparking fears of further declines. Blockchain analyst Ali Martinez flagged the sell-off, noting that whales likely took profits after XRP failed to sustain its mid-range breakout above $2.70.

The selling spree led to a notable drop in liquidity, leaving retail investors hesitant to re-enter amid market uncertainty. Data from CoinGlass revealed that spot taker CVD showed a persistent sell-side dominance, reflecting stronger activity from market sellers compared to buyers.

Recent whale metrics:

• Tokens sold: 2.23 billion XRP since Oct. 11
• Open interest: Down 3.5% in 24 hours
• Spot CVD: Taker sells > taker buys (bearish skew)

Historically, whale exits at key resistance levels have preceded extended corrections, and current technical signals indicate this pattern may be repeating.

Outlook: $2 Becomes Line in the Sand

Market strategists now view $2.00 as the pivotal level for XRP’s short-term direction. A decisive break below could accelerate selling toward $1.90–$1.85, while a successful defense might trigger a rebound back to the $2.70–$2.75 zone.

Despite the negative bias, some traders see potential for stabilization once selling volumes subside. If bulls defend $2 convincingly, analysts predict a short-lived rally before renewed consolidation.

For now, sentiment remains fragile. With whales trimming exposure and technicals favoring the downside, XRP’s ability to hold above $2.00 could determine whether the market enters a deeper correction or stages a tactical recovery.