XRP gained over 4% in the last seven days, pushing the price above the $3 mark. The movement triggered profit-taking among market players, with whales dumping significant amounts onto the market. According to an update by Ali Martinez, a renowned crypto analyst, these large holders sold off 160 million XRP in the last 14 days.
XRP technical signals align with weakness
Notably, this represents $480 million worth of XRP as these whales went for profit as soon as the price flipped $3. This whale action has sparked concerns in the XRP community as their activity might impact the price outlook in the short term.
Generally, a large sell-off by whales signals a loss of confidence in the future price performance of an asset. For XRP whales to dump on the market, it suggests that large holders are not anticipating a spike soon, and the asset might stay in consolidation mode for a while.
As of press time, XRP is changing hands at $2.98, representing a 2.95% decrease in the last 24 hours. The coin previously traded at a peak of $3.09, but due to bearish sentiment from whale action, market participants are now more cautious.
This has also been reflected in the trading volume, which dipped by a significant 9.45% to $5.22 billion within the same time frame.
On-chain declines add to XRP’s bearish case
As U.Today reported, the current price volatility is consistent with the Bollinger Bands: signal. Despite the climb to $3, this technical indicator revealed that XRP’s rally has slowed down. The altcoin failed to hold above the upper band near $3.14, confirming that XRP was in decline.
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Meanwhile, on-chain and market activity showed that active accounts on the XRP Ledger fell by nearly 50%. The loss of transactional demand is also contributing to the price fluctuations. The decline in active addresses suggests users are losing confidence in a possible rebound.