XRP has dipped below the $3 psychological threshold following the massive offloading of nearly 470 million tokens by whales, sparking concerns of a potential deeper market correction.
As of press time on August 20, XRP was trading at $2.88, down roughly 4% over the past 24 hours. The token has lost 10% over the past week and 17% over the last month, placing it nearly 20% below its all-time high of $3.65 reached in July.
Whale Offloads Weigh on XRP Price
On August 20, analyst Ali Martinez highlighted on X that whales have offloaded roughly 470 million XRP over the past 10 days, fueling worries about increasing selling pressure. Such significant liquidations often hinder price momentum, particularly during periods of weak overall market sentiment.
Despite the recent pullback, over 90% of XRP’s circulating supply has stayed in profit since mid-July, according to Glassnode data, with holders enjoying average profit margins above 90%. This unusually high level of profitability, coupled with the conclusion of Ripple’s long-running legal battle with the SEC, indicates that much of the positive news may already be reflected in the price. Analysts caution that such sustained profit levels could prompt increased profit-taking if the market experiences another bearish shock.
XRP technical analysis
Technical indicators for XRP point to a cautious outlook. Oscillators such as the MACD are signaling sell conditions, while the relative strength index (RSI) sits at 42, suggesting the market is neither overbought nor oversold. Short-term momentum hints at possible relief, but the moving averages present a more bearish perspective.
XRP has remained consistently below its short- and mid-term moving averages, including the 10-, 20-, and 50-day SMAs and EMAs, signaling ongoing selling pressure. However, longer-term indicators show potential support, with the 100- and 200-day moving averages still in “buy” territory, suggesting the broader uptrend could persist as long as XRP holds above key long-term support levels.
In a bearish scenario, XRP could retest the lower boundary of its seven-day range at $2.86, with the next support level around $2.70 if selling continues. Conversely, bulls would need to reclaim the $3.00–$3.10 zone to regain momentum and target a move toward $3.30.
