DANGER ZONE: XRP Faces Pullback Risk as Long-Term Holders Fuel a 2,200% Sell Surge!

XRP’s recent bullish momentum has suddenly faded as on-chain data reveals a massive surge in selling pressure from long-term holders. Data shows that XRP holders have increased their outflows by more than 2,200% in less than two weeks, signaling a major wave of profit-taking. This selling is compounded by a dangerous split among whale cohorts, creating a lack of unity that leaves XRP highly vulnerable to a short-term pullback.

I. The 2,200% Sell-Off Surge

The primary factor pushing XRP into a pullback risk is the aggressive distribution by its most loyal investors: Hodler Net Position Change: Data shows XRP’s long-term holders have turned sharply negative. Between October 19 and 28, long-term wallets ramped up their outflows from 3.28 million XRP to a heavy 77.9 million XRP, a surge of over 2,200%.Profit-Taking Indicated: This aggressive outflow points directly to profit-taking after the recent price rebound, suggesting these older holders are reducing their exposure rather than accumulating for the next rally.

II. The Dangerous Split Among Whales

Adding to the bearish pressure is a sharp divergence in activity among different classes of whales, which historically precedes price weakness: Mega Whales Accumulate: The largest holders, or “mega whales” (holding 100 million to 1 billion XRP), have actually increased their holdings by about $289 million since October 27, suggesting they are betting on a rebound.Smaller Whales Distribute: Conversely, the smaller whale cohort (holding 10 million to 100 million XRP) has been a net seller, reducing their exposure by $105 million over the same period.Mixed Signal Impact: This clear disconnect among major holder groups creates market indecision and a lack of conviction, making the price more susceptible to downward movement.

III. Critical Price Levels and Pullback Target

XRP is currently locked in a tight technical formation, with the downside risk being clearly defined: Technical Consolidation: The token is trading within a symmetrical triangle on the 12-hour chart, signifying near-balanced buying and selling pressure between $2.69 and $2.60.Critical Support Line: The immediate support to watch is $2.60, followed by the key level of $2.55.Pullback Target: If the price slips below $2.55, the risk of a deeper correction increases sharply, targeting $2.46. This level aligns with the 0.618 Fibonacci retracement and is the area where traders expect the first strong buying interest to emerge.Bullish Invalidation: For bulls to regain control, a decisive breakout and close above the upper trendline at $2.69 is necessary, which could pave the way for a rally toward $2.88.

IV. Conclusion: High Odds of Short-Term Pullback

The combination of a 2,200% surge in long-term holder selling and the chaotic divergence in whale behavior has pushed XRP into a dangerous zone. Until bulls can engineer a decisive break above $2.69, the odds favor a short-term pullback. The immediate risk is a loss of the $2.55 support, which would confirm the bearish pressure and send XRP searching for the next major floor at $2.46.

Disclaimer

This article is for informational purposes only and is based on third-party on-chain and technical analysis. The views expressed do not constitute financial, investment, or trading advice. The cryptocurrency market is highly volatile and speculative. Readers must conduct their own thorough research and consult with a qualified financial advisor before making any investment decisions.