As XRP witnesses increased sell-offs by major holders, on-chain data suggests mounting pressure on the token‘s short-term price outlook. This analysis, derived from Santiment data by analyst Ali Martinez, points to declining balances in wallets with significant holdings and a surge in tokens transferred to exchanges, challenging XRP’s sustainability within its current price range.
Drop Among Large XRP Holders
Recently, the number of wallets containing between 10 million to 100 million XRP has fallen from 351 to 339, indicating the gradual withdrawal of 12 such wallets from the market during the same period. This simultaneous pullback by substantial investors signals a weakening buying power that previously balanced the price during downturns.
Ali Martinez highlights that Santiment data shows a decline in wallets holding 10 million to 100 million XRP, which could undermine the resilience of the current pricing thresholds.
In conjunction with this trend, total XRP balances on exchanges have risen from 11.003 billion to 11.05 billion. The additional 50 million XRP influx supports expectations of increased selling pressure. Such market entries, especially during unfavorable external conditions, may exacerbate price impacts.
Strategic Price Level Emerges
On the four-hour chart, XRP hovers around $1.30, closely aligning with the lower bounds of a rising channel maintained since August. Here, the $1.26 level emerges as the critical threshold amid intensified selling pressure. Should buyers defend this area, the price might stabilize between $1.30 to $1.43, with the potential to retest $1.62.
Conversely, losing support at $1.26 could accelerate sell-offs, initially bringing the $1.11 level into focus, with prolonged pressure raising the risk of a deeper pullback. In some analyses, the $0.98 mark is considered a possible target zone if further declines occur.
Heightened Market Monitoring
Amidst these dynamics, not only price movements but also trends in large wallet activities and exchange balances are closely tracked. In meme token markets, internet trends rapidly escalate into multimillion-dollar interests. For example, data from Fomo reveals a startling transaction in Niu Lai, where an initial $99 investment ballooned to approximately $370,000. The app integrates the discovery and trading of tokens, allowing for comprehensive tracking of meme token markets via social feeds, investor rankings, and trade notifications—all in one platform.
The increase in XRP exchange balances from 11.003 billion to 11.05 billion underscores a growing sale supply, necessitating a robust buyer response at key levels.
Currently, XRP’s short-term trajectory appears contingent on major investors’ selling pace and buyers’ demand near the $1.26 region. Shifts in on-chain indicators denote that the market’s reaction at this juncture may become increasingly pivotal in the coming days.
