Key Takeaways
Why is XRP facing caution now?
Whales unloaded 160 million XRP in two weeks, while Stoch RSI at 88.89 flagged extreme overbought conditions, raising volatility and retracement risks.
What levels matter for XRP next?
Fibonacci targets sat at $3.80 and $4.49, but a handle retest near $3.00 could decide continuation.
Whales unloading 160 million Ripple [XRP] in just two weeks has sparked caution in the market, as such concentrated selling often drives volatility and liquidity stress.
Historically, whale exits have acted as catalysts for short-term corrections, particularly when retail demand cannot offset supply.
By the way, this latest round of distribution coincided with XRP trading in a delicate technical structure.
However, whale selling does not always derail longer-term rallies. Often, these moves represent profit-taking rather than a shift to bearish conviction.
The critical question now is whether this supply shakeout weakens momentum or simply clears the path for continuation.
Will XRP retest the handle before breaking higher?
XRP’s price structure showed a clear cup and handle formation, with the handle breakout occurring through a descending channel.
Despite the bullish signal, profit-taking appears to be building, which could trigger a retracement.
In this scenario, XRP may retest the upper boundary of the broken handle channel to confirm it as support before advancing higher.
The Stoch RSI sat at 88.89 at press time, signaling overbought conditions. This suggested cooling momentum and the likelihood of a retracement toward the upper boundary of the broken handle channel.
If buyers defend the retest, Fibonacci levels project upside potential toward $3.80 and $4.49. Failure, however, could risk undermining the bullish setup and delay further momentum.
Source: TradingView
Futures volumes are cooling after the breakout
XRP’s Futures Volume Bubble Map showed trading activity in Derivatives was cooling, reflecting a pullback in momentum after the initial breakout.
Cooling volumes often signal that traders are pausing, either locking in profits or waiting for confirmation before re-entering.
While reduced activity can temporarily limit upside, it also suggests the market is consolidating rather than aggressively reversing.
During the cooling phase, it is more likely that the handle will need to be retested, as support validation becomes critical. If the boundary holds, the bullish setup strengthens, paving the way for continuation.
If not, prolonged consolidation could delay XRP’s march toward Fibonacci targets.
THIS reveals a cautious but balanced market
Derivatives data showed that XRP’s OI-Weighted Funding Rates stood at 0.0079% at press time, reflecting balanced positioning among leveraged traders.
Neutral funding reduced liquidation risks but signaled hesitation.
This restraint suggested traders awaited confirmation before committing heavily. While it capped immediate upside, it also kept the market from overheating.
Once funding tilts, derivatives could amplify whichever direction XRP chooses.
Is XRP’s correction a reset for bigger breakout?
Whale selling and profit-taking have introduced short-term caution, yet XRP’s cup and handle formation remains intact.
A retest of the handle’s upper boundary appears likely, and holding this level could confirm new support.
If the retest holds, the technical path toward $3.80 and $4.49 remains viable, confirming that the recent correction is more of a reset than a reversal.
