XRP Price Faces Pressure as Whales Distribute Holdings

NEW YORK, April 5, 2025 — XRP continues to struggle in the market, having dropped over 35% since its peak of $3.40 in January. Recent on-chain data indicates that large holders, or ‘whales,’ are actively distributing their tokens, potentially pressuring the altcoin’s price further in the near term.

The downward trend is underscored by the formation of an inverse cup and handle chart pattern, a classic bearish reversal signal. This formation indicates waning buyer momentum following an uptrend, visualized as an upside-down teacup.

XRP’s upward trajectory peaked around March 19, transitioning into a rounded decline that reached completion by the end of the month. The price has since languished between $2.05 and $2.20, forming the ‘handle’ of the pattern. Analysts note that a breakdown below this price range could trigger a significant downturn, potentially pushing XRP towards the $1.58 support level, reflecting a projected decline of over 25% if the bearish pattern unfolds as expected.

Moreover, the volume profile visible range (VPVR) indicator identifies crucial points of control between $2.10 and $2.20, marking them as significant support zones. A fall below this high-volume area could intensify selling pressure, as historical support levels become less reliable at lower volumes.

Conversely, should XRP manage a strong close above the 50-period four-hour exponential moving average (EMA) near $2.14, it might invalidate the inverse cup-and-handle signal. In this scenario, bullish momentum could emerge, leading XRP toward the 200-period four-hour EMA around $2.28.

As of April 5, data shows that large holders have been net sellers since late 2024, with the 90-day moving average whale flow chart indicating persistent outflows. This trend signifies that whales have been distributing XRP during periods of price stability, raising concerns over the commitment of institutional investors.

In the fourth quarter of 2024, whale activity turned notably negative, suggesting that large entities were capitalizing on price peaks to sell. This strain has persisted into 2025, highlighting a period of declining whale support that threatens XRP’s price stability unless a trend of accumulation resumes.

Market sentiment remains cautious, influenced by broader economic factors, including sentiments surrounding U.S. President Donald Trump’s policies. Analysts fear these factors could suppress XRP’s performance in the coming quarters.

This article is not intended as investment advice. All trading and investment activities involve risks, and readers are encouraged to perform their own research before making financial decisions.