Large holders of Ripple’s XRP token are reportedly selling around $50 million worth daily. The ongoing outflows from these significant wallets could jeopardize XRP’s ability to maintain its $3 support level amid growing retail pessimism and mixed signals from market analysis.

Whale Selling Pressure Increases Retail Fear

According to data shared by Analyst JA Maartunn on X, whale flows for XRP have been averaging $50 million daily over the past month, suggesting sustained selling from large investors. This trend aligns with a rise in retail fear, indicated by a recent Santiment report. The report highlighted a significant decline in XRP’s sentiment ratio, reaching levels not seen since April, amid concerns fueled by external market factors.

In the last week, XRP has seen a nearly 7% price drop, currently hovering around $2.82 and down approximately 22% from its July all-time high of $3.65. Despite these short-term challenges, some technical analysts remain optimistic about a potential upswing, with forecasts suggesting that enduring above $3 could lead valuations back up to ranges between $4 and $4.50.

Market Sentiment vs. Underlying Fundamentals

Even though market sentiment leans towards pessimism, historical patterns suggest that fear may precede price increases for XRP. The data indicates that past moments of fear led to significant price rebounds, supported by the fundamental growth of Ripple’s DeFi activities, particularly on the Flare network, where the total value locked surged 28% in September after a new protocol was introduced.

If the flow from whales stabilizes and supports hold firm, analysts predict a recovery in XRP’s price trajectory to $4 in anticipation of a positive market reaction.