A major XRP transaction has caught the crypto market’s attention, raising questions about the token’s short-term direction. On-chain data shows that a whale transferred 53 million XRP—valued at approximately $118 million—to Coinbase, sparking speculation about a potential sell-off and putting pressure on the crucial $2 support level .
What’s Happening with XRP?
• Large Whale Transfer: Whale Alert flagged a 53 million XRP transfer to Coinbase, which often signals that a large holder may be preparing to sell. While the transaction hasn’t been confirmed as a sell-off, its timing coincides with a sharp 7% drop in XRP’s price, which recently touched the $2.04 support and brushed against the 200-day EMA .
• Bearish Sentiment Dominates: The market structure remains fragile. Traders have placed significant short positions between $1.96 and $2.26, with $91.66 million in cumulative short liquidations stacked at $2.268 and $43.60 million at $1.962. This creates a strong resistance band, making it difficult for XRP to break higher unless bullish momentum returns .
• Volume Surge: Despite the price dip, trading volume spiked by 75%, indicating heightened activity and uncertainty as the market consolidates near key levels.
Key Price Levels to Watch
| Level | Significance |
| $2.00 | Critical support; a break below could trigger further downside to $1.74 (13% drop) |
| $2.08 | 200-day EMA; currently being retested |
| $2.26 | Major resistance; a breakout could lead to a 22% rally toward $2.60 |
| $1.74 | Next key support if $2 fails |
| $2.60 | Potential upside target if bulls regain control |
Market Outlook
XRP is currently at a crossroads. The combination of whale uncertainty, heavy short positions, and increased trading activity suggests that the market is bracing for a decisive move. If the $2 support holds and bullish momentum returns, XRP could see a significant rally. However, a break below this level may open the door to further declines, with $1.74 as the next major support.
