XRP Battles Whale Exodus: Can $2.96 Support Hold Against Massive Selling Pressure?

XRP faces its ultimate stress test as whale dumping accelerates—threatening to crack the critical $2.96 support level that's kept the digital asset afloat.

The Great Whale Exodus

Massive holders aren't just dipping toes—they're diving headfirst into sell orders. This isn't profit-taking; it's a strategic retreat that's shaking confidence across the board.

Support Level Showdown

That $2.96 marker isn't just another number—it's the line in the sand between stability and freefall. Break below it, and we're looking at a cascade that could erase recent gains faster than a crypto influencer's credibility.

Market psychology's turning sour as whales make their moves. Remember: when the big players cash out, the little guys often get left holding the bag—another classic finance moment where the house always wins.

What to Know:

• XRP has dropped nearly 10% in the past month, trading around $2.96, while facing continued selling pressure from large holders depositing tokens on exchanges
• Historical data shows similar whale selling patterns preceded major price peaks in 2018, 2021, and 2023, suggesting potential cycle top behavior
• Technical analysis identifies $2.95 as a critical support level, with potential upside targets of $4.60-$5.20 if resistance breaks, or downside risk to $2.65 if support fails

Whale Activity Mirrors Historical Cycle Patterns

CryptoQuant analyst PelinayPA identified concerning parallels between current XRP exchange inflows and historical price peaks. The analyst documented how periods of heavy inflows from major holders preceded significant corrections at XRP's 2018 peak above $3.00, the 2021 high NEAR $1.90, and the 2023 rally toward $0.90.

"At the start of 2025, XRP rallied to $3.5–$4 with massive inflow waves, especially in high-value bands (100K–1M+ XRP)," PelinayPA noted. "This suggests significant whale selling pressure."

Current exchange inflow data continues showing elevated levels, particularly from holders controlling substantial positions. The analyst emphasized that inflows remain "exceptionally high," indicating persistent short-term selling pressure that could influence price direction.

Technical Indicators Highlight Make-or-Break Level

Market participants closely monitor the $2.95 support zone, which corresponds to the 0.618 Fibonacci retracement level from XRP's recent rally. Technical analyst "XRP Update" outlined critical price thresholds that will determine the cryptocurrency's near-term trajectory.

Maintaining support above $2.95 could establish a foundation for moves toward $3.33 and $3.57.

A decisive break above the $4.60-$5.20 resistance zone WOULD push XRP into uncharted price discovery territory.

Conversely, failure to hold current support levels presents downside risk. The $2.65 level represents the next significant support if selling pressure intensifies and current technical floors give way.

Market Context and Broader Implications

XRP's recent performance contrasts sharply with other major cryptocurrencies, as ethereum continues establishing new highs while XRP faces consistent correction pressure. The divergence highlights selective institutional and retail interest across different digital assets.

Despite near-term challenges, analysts maintain that XRP's structural position remains stronger compared to previous market cycles. PelinayPA suggested that while immediate selling pressure persists, the cryptocurrency retains potential for new highs above $5.00 later in 2025 if market conditions improve.

Understanding Key Cryptocurrency Terms

Exchange inflows represent the movement of cryptocurrency tokens from private wallets to trading platforms, often indicating selling intent. Large holders, commonly called "whales," can significantly impact market dynamics through their trading activities due to the substantial amounts they control.

Fibonacci retracement levels serve as technical analysis tools that identify potential support and resistance zones based on mathematical ratios. The 0.618 level, also known as the "golden ratio," frequently acts as a significant price inflection point. Cycle tops refer to local or absolute price peaks that occur during broader market trends. Historical analysis of these patterns helps traders anticipate potential turning points in cryptocurrency price movements.

Closing Thoughts

XRP stands at a critical juncture where whale selling activity and technical support levels will likely determine its path forward. The confluence of historical precedent and current market dynamics suggests the next price movement could establish the cryptocurrency's trajectory through the remainder of 2025.