Why Are Crypto Whales Dumping XRP? Key Factors Behind the Price Crash

The post Why Are Crypto Whales Dumping XRP? Key Factors Behind the Price Crash appeared first on Coinpedia Fintech News

Despite several positive developments for XRP, the price has taken a sharp fall. Events such as Donald Trump mentioning XRP on Truth Social, speculation about a U.S. XRP Reserve, the possibility of the SEC dropping its lawsuit against Ripple, and pro-crypto appointments like Howard Lutnick in key White House roles should have boosted investor confidence. Additionally, the SEC has launched a crypto task force to establish clearer regulations.

However, none of this has prevented XRP from crashing 29.9% in the last 30 days, including a 14% drop this week and a 10.5% decline in just 24 hours.

With such heavy losses, can XRP recover? Let’s take a closer look.

Crypto Market in a Downtrend

The entire crypto market is in a bearish phase, with a 9% drop in the past 24 hours. Most top cryptocurrencies have suffered losses:

• Bitcoin (BTC): -6.2%
• Ethereum (ETH): -10.5%
• BNB: -5.2%
• Solana (SOL): -12.6%
• Dogecoin (DOGE): -10.3%
• Cardano (ADA): -9.2%

XRP has followed the trend, falling 10.5% in the past 24 hours and 11.63% just yesterday.

XRP at Critical Price Levels

At the moment, XRP is trading at $2.197, which is 28.55% below its monthly high. According to crypto analyst EGRAG CRYPTO, if XRP drops below $2.30, it could face a further freefall to lower price levels.

Yesterday, XRP closed at $2.278, and today, it remains 3.77% lower than its opening price.

#XRP – 12 Hour time Frame: (Updated):

Take a look at the previous post from February 12, but I’ll simplify things for you! check the colored comment
The Updated Chart:
We closed above $2.60, which is a bullish sign! However, we struggled to close above $2.85. Our key… https://t.co/nXkZQsgEnL pic.twitter.com/17Jx8j2j5a

— EGRAG CRYPTO (@egragcrypto) February 24, 2025

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XRP Technical Analysis: A Short Overview 

Technical indicators show mixed signals:

• RSI at 33.04: XRP’s Relative Strength Index (RSI) on the daily chart is in the oversold zone, meaning a rebound could be possible.
• Falling Futures Open Interest: XRP’s Futures Open Interest has dropped by over 15%, signaling that investors are losing confidence.
• Surging Trading Volume: XRP’s 24-hour trading volume is 100.52 million, the highest since February 3, 2025.

On-chain data shows that large XRP holders—whales—have sold over 81 million XRP on exchanges, adding further pressure to the price.

XRP’s recent crash, whale sell-offs, and declining investor confidence raise concerns about its short-term outlook. However, oversold conditions and strong trading volume could open the door for a recovery.

Will XRP bounce back, or does it have further to fall? Investors should watch closely.