XRP Price News: Is There a Massive Selloff Coming?

The recent XRP selloff triggered concern among investors, igniting debates about what’s next for this digital asset’s price. In this article, we analyze the latest XRP price action, explore the root causes of the XRP selloff, and provide insight into potential support levels and future scenarios for XRP.

XRP Price Performance Overview

In the last 24 hours, the XRP price tumbled over 8%, plunging from a peak of $3.17 to a low near $2.94. This sharp movement in the XRP price was accompanied by trading activity that soared to nearly four times the daily average, indicating a robust wave of panic selling and profit-taking throughout the market.

As of the latest data, the XRP price has stabilized marginally, oscillating in the $2.94 to $2.98 range. This comes after an intense XRP selloff, reflecting sentiment shifts not only among retail traders but also major market participants.

Main Drivers Behind the XRP Selloff

Insider and Whale Activity Intensifies Downtrend

A significant catalyst for the recent XRP price decline was heavy selling by whale investors and insiders. Ripple co-founder Chris Larsen transferred $175 million in XRP, with $140 million reaching centralized exchanges. These notable insider transactions sparked panic, fueling the broader XRP selloff as retail investors hurried to exit their positions.

This development is particularly impactful due to XRP’s concentrated supply. As of March 2024, roughly 40.78% of circulating XRP was held by the top ten addresses, with Ripple Labs controlling about 37% across only eight wallets. Such centralization means swift XRP price movements can occur when just a few major holders act.

Profit-Taking at Near-Multi-Year Highs

Another element behind the steep drop in XRP price was a surge in profit-taking. When the XRP price reached the $3.60 range, over 90% of XRP holders were in profit. As is common in the crypto sphere, these traders sought to lock in gains, compounding the XRP selloff once momentum turned bearish after failing to breach resistance at $3.17.

Macroeconomic Headwinds Add Pressure

Beyond internal factors, global risk sentiment contributed to the recent XRP selloff. New tariffs imposed by the U.S. triggered concerns about rising inflation and uncertain monetary policy, pushing investors out of speculative assets. Whenever wider derisking takes place, the xrp price and other volatile crypto assets tend to feel the strain most acutely.

XRP Price Outlook: Will Support Hold?

Despite the pronounced xrp selloff, several indicators suggest potential stabilization for the xrp price:

• Institutional Buyers Defend Support: On-chain data and exchange order books show institutional interest building around the $2.94–$2.98 XRP price range, hinting that some major players believe this zone may act as support after the xrp selloff.

• Exhaustion Signals in Trading Volume: The intensity of the selloff, alongside substantially higher trading volumes, could indicate that most short-term sellers have already exited, paving the way for a potential base.

Conclusion

The recent XRP selloff sent the xrp price tumbling, led by insider selling, profit-taking at resistance, and headwinds from the broader market. With institutions now absorbing supply around $2.94–$2.98, this support zone will be crucial for the xrp price outlook. However, given XRP’s unique supply dynamics, investors are advised to stay alert, manage risk, and follow ongoing market updates before making decisions involving the xrp price.