XRP has declined 20% since reaching a local peak last Saturday, marking a reversal of its recent rally. The token surged from just under $1.00 to $1.70 over a 10-12 day period before momentum faded.
The asset is now struggling to hold above $1.40, with weakness accelerating after Fed Chair Kevin Warsh delivered a hawkish speech at Jackson Hole on Friday.
Network Activity and Whale Accumulation
Active addresses on the XRP Ledger increased sharply during the rally, jumping from 47,180 to over 356,000, according to analyst Ali Martinez. During the same period, large holders accumulated over 300 million tokens within 96 hours.
Support and Resistance Levels
The $1.35-$1.38 zone has emerged as the critical next support level, with approximately 3.2 billion XRP having been traded in this range historically. The token failed to hold above the 50-week exponential moving average at $1.54, signaling technical weakness.
If the asset rebounds, resistance awaits at $1.60 and $1.68, where roughly 2 billion tokens were traded at each level. The most significant resistance sits at $1.86, where 3.47 billion XRP were previously traded. A breakout above that level could open the path toward $2.00 and $2.19.
Market commentators note that holding above $1.40 is crucial for preventing a deeper correction.
