XRP Price Faces Risks as Whales Sell and Activity Declines

NEW YORK, NY — XRP price shows warning signs as it struggles to hold above $3. Over the past two months, whale investors have sold off substantial amounts, and overall network activity has dropped significantly. Analysts believe this increase in selling could push XRP price down towards $2.

Since reaching multi-year highs of $3.66, XRP has formed a descending triangle pattern on its daily chart. A recent breakout attempt above the triangle’s upper trendline failed, indicating weakness among buyers. If XRP does not reclaim the $3 level soon, analysts suggest it could fall to $2.70, with further support levels around $2.50 and a potential low of $2.06.

Whale selling has been a critical factor in this potential decline. Recently, large investors took profits after pushing the price to $3.10, offloading over 160 million XRP tokens worth approximately $476 million. The Supply Distribution metric data shows that addresses holding 1 to 10 million XRP have decreased their holdings to 6.79 billion, the lowest in six weeks.

Adding to the challenges, XRP’s reserves on exchanges have increased significantly, now totaling 3.94 billion tokens, which means more XRP is available for sale. According to data from Glassnode, these reserves rose by 665 million tokens since August 27.

Additionally, network activity has sharply fallen. Onchain data from CryptoQuant shows that daily active addresses plummeted from a peak of 50,482 on July 18 to about 21,000 currently. New addresses have also declined from a 2025 high of 11,000 daily to just 4,300, signaling low user engagement.

Historically, a decrease in network activity often precedes price stagnation or drops, correlating with lower transaction volume and diminished buying momentum. The current outlook for XRP remains uncertain, and analysts will closely monitor how the price reacts to these trends.