XRP surged from $1.00 to $1.70 within 72 hours following an August 19 breakout, but the token has since retreated, losing key support levels at $1.60, $1.50, and $1.40. On-chain metrics now suggest additional downward pressure ahead.
Whale Activity Reverses
The initial rally was driven largely by whale accumulation, with major market participants acquiring approximately 400 million tokens over a week-long period. However, recent data indicates this trend has reversed. Whales have sold or redistributed roughly 90 million XRP over the past week, according to Santiment Intelligence data cited by analyst Ali Martinez. Such moves from large investors typically increase immediate selling pressure and often prompt retail investors to follow suit.
Network Participation Plummets
Daily active addresses have declined sharply by over 90% from the rally peak of 388,492 to 38,163, signaling a significant drop in ecosystem participation during the correction. This metric represents one of two key warning signs cited by analysts tracking XRP's trajectory.
According to Martinez, XRP has found critical support near $1.35, a level associated with 2.29 billion tokens in previous trading activity. Should the asset maintain this support, potential rebounds toward $1.60 or $1.68 could follow.
Alternative Outlook
Some analysts present a more bullish perspective. Analyst Celal Kucuker noted that XRP currently trades 12% below its 50-day moving average, the same point where its previous all-time high rally began. Based on historical patterns and Fibonacci analysis, Kucuker predicted a potential 600% move could occur if the token reclaims the 50-day moving average.
