XRP Price Drops 8% as Whale Sell-Off Drives Price Below $2.40 – Can the Bulls Ignite a 50% Rally?

Highlights:

• XRP drops 8% to $2.37 with a 427% spike in volume.
• The price fell from $3.07 to below $1.8 on Monday, which was a November low.
• Whale sell-offs of over 200M XRP caused the market cap to drop below $130B.

The XRP has taken a sharp hit, plunging 8% in the last 24 hours to trade at $2.37 as of 5 a.m. EST, following a 427% pump in trading volume to $33 billion. This drop in price comes after a sharp decline that started on Sunday morning, with XRP falling from $3.07 to $2.7 and continuing to reach $2.5.

💥#XRP Price Dips as Whales Sell 130 Million Tokens!🚀
⚡What's Next?👀#bist100 #CRYPTO https://t.co/S4F08sdBX1

— Crypto Data Space (@cryptodataspace) February 3, 2025

As the corrections briefly came into play, the actual damage was seen on Monday when XRP fell below $1.8 on Bitstamp for the first time since late November. This has been further compounded by a sudden shift in whale behavior, as large investors have sold off over 200 million XRP in a matter of days. The consequence was its market capitalization falling below $130 billion and losing the number three cryptocurrency spot to USDT.

XRP Price Rebounds on Strong Support Zone

The XRPUSD pair indicates a pullback after XRP surged upward in parabolic growth and had a breakout. The coin quickly faced heavy sell-off pressure and has, amid the downturn, reached an important level. The cryptocurrency is testing a critical support zone, ranging from $2.30 to $2.00, which is becoming increasingly important.

This is interpreted to mean that bearish sentiment is getting intense as traders take profits from XRP’s strong rally in recent months. Failure to hold the current support would extend the losses toward $1.50 and probably down to $1.00. The opposite would see buyers defend at this zone, meaning the cryptocurrency bounces back with higher levels of resistance coming in at $2.50 and $3.00.

Technical Indicators Signal Oversold Conditions

Technically, the XRP is close to becoming oversold and, hence, may see short-term recoveries. Currently, the RSI stands at 33.51, which is close enough to the 30 threshold, normally an indicator of an oversold asset that is due for a bounce. However, that cannot come into play anytime soon as the volume has yet to show serious buying interest to support such claims of upside unless the Bulls gather momentum.

Also, XRP continues to trade below key moving averages, supportive for the bears. Trendline resistance at $3.34 is an important level that bulls need to recapture to have a more optimistic perspective once again. Although not certain, the market remains at risk of further declines if broader conditions continue to stay weak.

What’s Next for XRP Price?

XRP needs to reclaim the $2.50, which could provide the ticket for XRP to regain upward momentum towards and beyond $4.00. The risk of a deeper correction starts if XRP falls below $2.00, whereby realistic downside targets are at $1.50 and even as low as $1.00.

If bulls step in to defend the price, we might see a period of consolidation followed by a possible reversal. However, if the selling pressure is strong enough, it could push XRP into deeper losses, making $2.00 the make-or-break level for short-term direction.