XRP’s sharp drop left traders on edge throughout Wednesday morning.
After surging to fresh highs, the digital asset lost its momentum quickly.
Within a few hours, XRP moved from a session peak of $3.17 to a low at $2.94. The most intense selloff unfolded at midnight as roughly 2.7% was wiped out in just 60 minutes. During that period, volume surged to over 259 million units; a figure well above the daily average. This dramatic spike highlighted how fast sentiment can shift, especially for assets with a track record of volatility.
A key takeaway from the overnight session was the speed at which price action turned. Early strength failed to hold, and large liquidations forced a retreat below the critical $3 support mark. Market watchers noted that volatility like this often attracts participants aiming to take advantage of price swings rather than long term gains.
Despite a challenging start, some evidence of buying interest was visible. After initially dipping, XRP managed a modest bounce, climbing back above $2.98 in the hours that followed. Here, market data indicate that volumes diminished significantly, hinting at reduced sell pressure and possible buying by institutional investors. For many analysts, such a pattern points to certain players accumulating positions near technical support instead of fleeing the market entirely.
XRP’s Mixed Signals Amid Selloffs and Accumulation
Mixed trends defined the last several weeks for XRP. On one side, major holders have steadily exited positions, with an estimated $28 million sold off daily over the prior 90 days. This trend, drawn from blockchain analytics, illustrates a measured but persistent wave of outgoing capital from earlier participants and institutional players.
Yet the story is not entirely one of retreat. Even as some large holders moved out of XRP, new capital appears to flow in. Recent exchange data shows over 310 million tokens—worth nearly $1 billion—moving off exchanges during this period. It is a strong sign that long term holders are returning, moving their assets out of liquid trading venues to places where they can remain untraded for a while. These crosscurrents fuel speculation about whether the worst of the selling is over, or if further retreats might be ahead.
The broader market context adds further complexity. Maxwell Stein of BlackRock, a heavyweight in global finance, confirmed he would take part in Ripple’s Swell 2025 event. Industry observers view this participation as a mark of institutional interest, possibly signaling preparation for new XRP related products down the line. That said, prices still failed to respond with lasting gains, underscoring the deeply mixed sentiment that prevails right now.
Short term market signals point to ongoing caution. The closing price for XRP hovered near $2.98—a rebound from the lows, but still well beneath the $3 pivot point that traders have eyed closely for months. Holding below this threshold suggests that sellers retain control for now, and that a meaningful reversal might be difficult until buy-side flows return in greater force.
Support and Resistance Come into Focus
Technical analysis highlights several key thresholds shaping the short term outlook. Throughout the session, XRP tested and held the $2.94 level multiple times. This support price withstood intense sell pressure, thanks to buyers who stepped in at just the right moments. Their actions allowed XRP to edge modestly higher as the dust settled.
However, overhead resistance remains formidable. With prices repeatedly failing to push above the $3.02 to $3.05 range, traders will be watching closely to see if renewed spot buying can lift the asset past these barriers. Until that happens, many technical models suggest further sideways or even downward action remains likely.
Momentum indicators continue to show bearish signals, reflecting anxiety and fatigue among traders still processing the recent swings. But with volume falling back after the initial jolt, some interpret these patterns as a sign that the worst of the selling may have subsided for now.
Meanwhile, market participants are tracking several broader factors that could shape XRP’s next moves. Whether the $2.94 support continues to hold is critical, as a break lower could prompt further selling. Traders are also monitoring ongoing activity among major holders for signs of shifting strategies. The coming weeks may bring more news about institutional alignment, especially in light of Ripple’s upcoming conference and hints surrounding future products tied to digital assets.
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Conclusion
XRP’s recent price swings reflect both the uncertainty and dynamism common across the digital currency space. Rapid selloffs followed by measured accumulation reveal a market grappling with both risk and opportunity as major holders and institutional buyers reshape the landscape.
In the weeks ahead, attention will center on the resilience of key support levels and the actions of market leaders. Whether positive momentum can mount or more volatility lies in store, XRP’s journey continues to captivate and challenge investors worldwide.
Ewan’s fascination with cryptocurrency started through his curiosity about innovative technologies reshaping the financial world. Over the past four years, he has specialized in cloud mining and crypto asset management, diving deep into mining contracts, profitability analysis, and emerging trends. Ewan is dedicated to helping readers understand the technical and economic aspects of crypto mining, making complex information accessible and actionable.
