by What You Need to Know About XRP’s Recent Price Decline
XRP has experienced a significant decline, dropping 8% in just 24 hours. The cryptocurrency’s price fell from a session high of $3.17 down to a low of $2.94 as intense selling pressure overwhelmed initial market strength. This dramatic decline was most pronounced during the midnight trading window on August 1, when XRP plummeted by 2.7% in a single hour, with a staggering trading volume of 259.21 million units—nearly four times its 24-hour average.
Despite this downturn, there are signs of potential accumulation as XRP managed to bounce back slightly to $2.98. The volume subsided following the initial volatility, which may indicate that institutional buyers stepped in to absorb excess supply near crucial support levels.
Understanding the Market Dynamics: Whale Activity and Institutional Interest
The recent price movements of XRP have been influenced by mixed signals from whale activity. On one hand, large holders have liquidated approximately $28 million worth of XRP daily over the past 90 days, according to on-chain data. This ongoing trend highlights persistent distribution among institutional investors and early holders.
Conversely, during the recent correction phase, over 310 million XRP tokens valued at nearly $1 billion have been accumulated, as exchange balances fell sharply. This suggests a sustained capital inflow into XRP, which may support future price recovery.
Adding complexity to the situation, Maxwell Stein, Director of Digital Assets at BlackRock, has confirmed participation in Ripple’s Swell 2025 conference. This involvement hints at growing institutional alignment with XRP, despite the recent market pressure.
Price Action Summary: Key Metrics for Traders
- High: $3.17 (10:00 UTC, July 31)
- Low: $2.94 (00:00 UTC, August 1)
- 24-hour Change: -8%
- Hourly Low Point: $3.02 → $2.94 (Midnight drop)
- Volume Surge: 259.21M units during the correction vs. 64.89M average
- Closing Price: $2.98 (marginal recovery into session close)
XRP’s closing price near $2.98 represents a slight recovery from session lows; however, it still indicates broader structural weakness. The short-term sentiment remains fragile amid liquidation flows and technical breakdowns falling below the critical $3.00 threshold.
Technical Analysis: Support and Resistance Levels
The $2.94 support zone has held firm during multiple intraday tests, reinforced by aggressive dip-buying that allowed prices to reclaim $2.98 by session end. However, resistance remains overhead at the $3.02 to $3.05 range, with continued rejection likely unless spot inflows increase.
Current momentum indicators remain skewed bearish, although the recovering volume profiles suggest some exhaustion in the sell-off, indicating that traders should remain vigilant in monitoring the situation.
What Traders Should Watch Moving Forward
- Will the $2.94 to $2.95 range hold as structural support in the near term?
- Are there signs of renewed whale accumulation or a pause in distribution trends?
- What implications does BlackRock’s positioning ahead of Ripple Swell 2025 have for future XRP ETF-related narratives?
- How will the market react at the $3.00 to $3.05 resistance band, previously known for marking key distribution levels?
The current dynamics surrounding XRP demonstrate the complexities of the cryptocurrency market, particularly in the face of institutional interest and whale activity. For traders, it’s crucial to keep an eye on these developments as they navigate the volatile landscape of digital assets.
For those looking to understand XRP in more detail, check out our guides on What is XRP and XRP Price Prediction. Additionally, if you’re considering investing in cryptocurrencies, our articles on How to Buy Cryptocurrency and How to Buy XRP can be invaluable resources.
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