Massive Whale Sell-Off Triggers Market Concerns

Recent on-chain data reveals XRP's major holders have liquidated approximately 640 million tokens worth $1.9 billion since July 9. This substantial sell-off occurred while the digital asset traded between $2.28 and $3.54, marking the second significant distribution event in the past year.

Analyst Sounds Alarm on Structural Weakness

CryptoQuant analyst The Enigma Trader warns the market remains vulnerable unless whale wallets demonstrate sustained accumulation. "We need to see daily inflows exceeding 5 million XRP to signal a genuine trend reversal," the analyst noted, emphasizing the current absence of consistent buying pressure from large investors.

【Key Data Point】The 90-day moving average for XRPL whale flows has turned negative, reflecting the most aggressive distribution since January's market peak.

Technical Indicators Flash Warning Signals

Market charts show concerning divergence patterns:

• Price has formed higher highs since January

• Relative Strength Index (RSI) displays lower highs

• Trading volume has progressively declined

——This classic bearish divergence mirrors the April 2021 market top pattern——

Critical Support Levels to Watch

The $2.65 price zone has emerged as crucial support. A breakdown could trigger:

1. Initial test of 20-week EMA at $2.55

2. Potential plunge to 50-week EMA near $2.06

3. Worst-case scenario of 30% correction from current levels

Market Context and Historical Patterns

Interestingly, whale accumulation typically occurs during price dips, as seen between January-April when XRP corrected from $3.27 to $1.87. The current distribution phase suggests large investors may be taking profits after the recent rally.

【Notable Trend】Retail investors appear to be absorbing the sell pressure, continuing a pattern established during November-January's whale distribution period.

Industry Experts Remain Cautious

While some outflows might represent internal wallet reorganizations, the overall trend indicates weakening structural support. Market participants are advised to monitor:

• Daily whale wallet inflows

• $2.65 support level integrity

• RSI momentum confirmation

As of press time, XRP shows modest signs of whale flow recovery, though sustained accumulation remains absent. The coming week's price action around critical support levels will likely determine whether the 30% correction scenario materializes.