XRP Price Slips to $2.16 as Whale Activity Hits 3-Month High — What’s Really Happening?

After the failed attempt to breach above the rising trend line, which has been a strong support throughout 2025, the rally seems to have turned in favor of bears. The constant decline in the OBV validates the bearish claim, hinting towards a possible move not only below $2 but also below $1.8. However, the 50-day MA at $2.02 could act as a strong base, and if the market dynamics recover, a strong rebound could be possible, driving the price beyond the 200-day MA at $2.38.

Two Scenarios Traders Are Watching Closely

A surge in whale transactions during a declining market often signals strategic positioning, not panic. Large investors tend to act early. They accumulate or distribute when liquidity is available, not when price momentum becomes obvious. When whale activity rises while price falls, the market usually enters a compression phase before a decisive move. However, the direction of that move depends entirely on price response, not the activity itself.

Accumulation Scenario: Smart Money Absorbing Supply

If XRP holds above $2.05–$2.10, the recent whale activity may indicate accumulation.

In this scenario, large holders absorb selling pressure from weaker hands while price drifts lower or moves sideways. Once supply dries up, XRP could attempt a recovery toward the $2.40–$2.55 range.

Distribution Scenario: Whales Selling Into Liquidity

If XRP continues to reject the $2.20–$2.25 resistance zone, the surge in whale transactions could reflect distribution rather than accumulation. In that case, large holders may be using elevated activity to exit positions while demand remains fragile. A sustained move below $2.00 would significantly weaken the bullish thesis and expose XRP to deeper downside pressure.

What Traders Should Watch Next

XRP’s decline toward $2.16, combined with a surge in whale activity, signals a critical positioning phase rather than a resolved trend. Large holders are clearly active, yet price confirmation remains absent. Until XRP reclaims the $2.20–$2.25 zone, downside risk toward $2.00 cannot be ruled out. For now, the market is watching whether smart money is quietly absorbing supply or distributing into weakness. Direction will follow once price reacts.

Trust with CoinPedia:

CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.

Investment Disclaimer:

All opinions and insights shared represent the author’s own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.