Recent findings highlight a significant decrease in the number of XRP tokens held by large wallets. During the last month, holders with between 1 million and 10 million XRP divested a total of 440 million tokens. This trend is noteworthy as XRP’s price hovers around a critical level.

Major Holders Scaling Back

In the preceding 30 days, large holders have collectively reduced their balance from approximately 6.95 billion XRP to 6.51 billion XRP. This information was provided by analyst Ali Martinez, leveraging on-chain data.

During this span, the price of XRP dipped by 5% weekly and 1% over the past 24 hours, trading at $2.83 at the time of writing. The consistent reduction in whale holdings appears to relate to the price drop, indicating that selling pressure has potentially affected the market.

Notably, activity has been steady, suggesting a trend of decreased holdings among significant players, who typically adjust their assets based on broader market signals or when securing profits.

$2.80 Becomes a Crucial Support Level

The support level of $2.80 has garnered attention, particularly due to robust transaction volume at this price. Approximately 2.48 billion XRP changed hands at this level, making it a vital zone of realized value, accounting for about 4% of the total supply.

This kind of trading indicates that many participants may have entered the market around this price. Should the price remain around $2.80, investors might opt to hold or increase their positions, establishing a potential price stabilization base. Interest in buying typically escalates in uncertain market conditions around these price levels.

Additional Insights

If XRP falls below $2.80, it could trigger selling by holders, potentially leading to short-term losses and an uptick in trading activity. "$2.80 is the most critical support level for $XRP," remarked Ali, underlining the importance of activity around this price.

Source: Ali Martinez/X

Monitoring Short-Term Price Trends

Crypto analyst CRYPTOWZRD indicated that XRP’s price action is sending mixed signals. Investors are eyeing a daily close above $2.89 as an encouraging short-term indicator for bullish momentum. If XRP surpasses $3, it may trend towards $3.1320. Conversely, failing to maintain $2.89 could result in stagnant price movement.

“We now need to wait for the market to present the next viable trading opportunity,” the analyst suggested.

The daily analysis suggests XRP is testing a trendline, with a breakout above $3.15 potentially paving the way towards $3.65 or a new high. Until then, traders remain vigilant regarding forthcoming price trajectories.