XRP price has fallen nearly 4.7% this week and is currently hovering around $2.80. It may seem like a routine setback, but on-chain data reveals something deeper. Large shareholders and long-term investors are reducing their exposure, suggesting that confidence may wane in the short term.
Still, one technical signal on the chart suggests that all is not lost even if XRP manages to hold above critical support levels.
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Whales and Hodlers reduce positions as selling pressure mounts
Whale activity has become more cautious. In the past 24 hours, the total supply of XRP wallets holding 10 million to 100 million tokens decreased from 7.95 billion XRP to 7.93 billion XRP.
This is a reduction of approximately 20 million tokens, which equates to approximately $56 million at the current XRP price of $2.80.
At the same time, long-term holders have been steadily offloading funds since early October.
According to data from HODLer Net Position Change, which tracks monthly accumulations or distributions among long-term investors, holdings decreased from 163.68 million XRP on October 2 to 137.78 million XRP, a decrease of approximately 25.89 million tokens, or approximately $72.5 million in value.
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In total, that’s about $130 million worth of selling pressure within a week. This outflow coincides with XRP’s 4.7% weekly decline, indicating that both whales and hodlers are avoiding risk rather than increasing exposure.
Hidden bullish divergence brings last hope to XRP price
Selling by major groups is also displayed on the chart. XRP price continues to trade below the downtrend line (on the 12-hour chart), forming a descending triangle, a structure that typically indicates increasing bearish pressure.
Still, one technical formation could offer a glimmer of hope amid the selloff.
On the 12-hour chart, XRP is forming a hidden bullish divergence. This is a setup where the price is making higher lows while the Relative Strength Index (RSI), which measures momentum, is making lower lows.
This divergence often indicates that selling pressure is easing and suggests that a broad uptrend could continue if support holds.
In the case of XRP, its key level is at $2.77, its lowest since September 27th. If the 12-hour candlestick breaks above that level, the divergence could be verified. This would pave the way for $2.95 and $3.09, which were supported and rejected respectively during the previous bull run.
However, if the price falls below $2.77, the basis for divergence theory will weaken. And sellers could push XRP to $2.69 or lower.
For now, XRP price is at a crossroads. Heavy selling has clouded sentiment, but key technical signals still limit the scope for recovery.
