In recent days, the cryptocurrency XRP has experienced a drop below the psychological level of $3. The primary reason for this is large-scale sell-offs by major holders, known as whales.
Whale Selling Adds Pressure on XRP Price
On August 20, XRP traded at $2.88, down about 4% in the past 24 hours. In the last 10 days, whales sold around 470 million XRP, raising concerns about growing selling pressure.
Profitability Analysis of XRP Holders
Despite the pullback, over 90% of XRP's circulating supply remains in profit. According to Glassnode data, holders still average profit margins above 90%, indicating much of the good news may already be priced in.
Technical Analysis of XRP
Technical indicators for XRP show a cautious outlook. Indicators like the MACD flash sell signals, while the relative strength index stands at 42, indicating a balanced market situation. In a bearish scenario, XRP might retest the support level at $2.86.
XRP's decline below the $3 level raises concerns about a potential market correction. The still high profitability of most holders and any changes in technical analysis may significantly influence the token's future dynamics.
