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ToggleXRP Price Plummets 10% as Whales Take Profits and Liquidation Wave Spreads Across Altcoin Market
XRP recorded its highest daily and weekly close at $3.45 last week. However, in just a few days, the price has dropped nearly 10%, with a sharp correction of 10.33% on Wednesday - marking the deepest decline since April 6.
This decline is accompanied by a plunge in Open Interest in the XRP Futures Contract market, from $10.94 billion to $9.10 billion, equivalent to a 16.8% drop in just one day. This development shows that leveraged traders are gradually withdrawing from positions or being forced to liquidate, weakening short-term speculative sentiment and raising questions about XRP's ability to maintain its upward momentum.
XRP Faces Third Large Liquidation in 2025 as Whales Sell Off and Long Positions Wiped Out
The recent XRP price drop appears to be driven by large-scale selling from whales and a surge in long position liquidations. Crypto analyst Darkfost noted that a wallet associated with Ripple co-founder Chris Larsen made significant XRP withdrawals, with over 50 million XRP transferred, and 140 million USD worth of XRP sent to exchanges.
Notably, withdrawal activity began to increase strongly since July 15, with 42 million XRP withdrawn on Thursday, though still lower than the peak of 84 million XRP withdrawn last Friday. This negative price movement triggered the third-largest XRP long position liquidation on Binance in 2025, with approximately 86 million USD wiped out in just a few hours, indicating increasing volatility and significant pressure on speculative sentiment.
Currently, 2,743 wallets hold over 1 million XRP each, with a total of 47.32 billion tokens - approximately 4.4% of circulating supply. However, this accumulation trend may be changing. According to CryptoQuant data, the 90-day average flow of XRP whales has turned negative, suggesting large holders may be starting to dump. Notably, this indicator turned positive in early May, just before XRP entered a strong upward movement. Therefore, the current reversal could be an early signal of a local peak, reflecting the potential for short-term correction if selling pressure continues to increase.
Can XRP Investors Protect This Important Support Zone?
Despite recent strong volatility, XRP's long-term market structure remains positive. The multi-month high established last week confirmed that the upward trend is still valid, even after the nearly 10% correction this week.
On the 4-hour timeframe, the immediate area of interest lies just above the $3 mark, with the $2.95 zone serving as an important liquidation area, which was swept through during Thursday's sharp decline. Maintaining this support zone will be key to avoiding continued correction and reestablishing the recovery trend.
If the price breaks above $3.25, this will confirm the market structure transformation towards an upward trend on lower timeframes, while consolidating the $2.95 zone as a reliable local dip. Conversely, if selling pressure continues, XRP may move towards the next liquidity cluster between $2.66 - $2.86. Among these, $2.64 serves as a strong support, which was a long-standing resistance during Q2 and now has the potential to become an important demand zone.
Overall, XRP investors still maintain control of the trend, as long as the price does not break below two critical levels of $3.00 and $2.64. Simultaneously losing both support zones could signal a change in trend structure and increase short-term downside risk.
This article does not contain investment advice or recommendations. All investments and trades carry risks, and readers should conduct their own research before making decisions.
