XRP Price Prediction: Why Are Whales Buying as XRP Dumps?

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XRP has recently faced significant downward pressure, losing its crucial $2.00 support level during a weekend sell-off. Despite bearish technical signals and broader market turbulence, a surprising trend is emerging: whales are accumulating XRP. While retail investors panic, large holders are stepping in to buy the dip, signaling long-term confidence in Ripple’s ecosystem. This article explores the current price dynamics, whale behavior, network fundamentals, and technical outlook for XRP—offering a comprehensive view of where the asset might be headed.

XRP Whales Accumulate Amid Market Chaos

XRP traded around $1.82 during Monday’s Asian session, marking a 10.7% drop over 24 hours and a cumulative 10% decline over seven days. The downturn coincided with global market instability triggered by former U.S. President Donald Trump’s renewed push to reduce trade deficits through reciprocal tariffs announced on April 2.

Trump’s comments over the weekend reinforced that these tariffs would remain in place until trade imbalances were corrected, fueling risk-off sentiment across financial markets. Cryptocurrencies weren’t spared—Bitcoin dipped to $78,400 and Ethereum fell to $1,576 on Monday.

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Yet, amidst the panic, XRP whales are doing the opposite of selling—they’re buying aggressively. On-chain data from Santiment reveals a notable increase in holdings among large investors. Addresses holding between 100,000 and 1 million XRP have increased their share of total supply from 5.189% to 5.267%. Even more telling, those holding between 10 million and 100 million XRP have boosted their stake from 3.046% to 3.406%, indicating strong conviction at current price levels.

This accumulation suggests that well-informed players see the current dip not as a collapse, but as a strategic entry point. Historically, such whale activity has often preceded major price reversals.

Rising Network Activity Signals Strong Fundamentals

While macroeconomic headwinds and technical indicators paint a bearish short-term picture, on-chain metrics tell a different story. XRP’s active address count has risen steadily over the past month—from 78,811 on March 7 to over 82,000 recently. This increase reflects growing user engagement with the Ripple network.

Active addresses represent unique wallets interacting with the blockchain within a given period. A rising trend here indicates increased transaction volume, dApp usage, or institutional adoption—all positive signs for long-term value.

This fundamental strength contrasts sharply with the current price action. It suggests that while traders react emotionally to market noise, real-world usage of XRP continues to grow. This divergence between price and utility often creates fertile ground for future rallies.

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Technical Outlook: How Low Can XRP Go?

Technically, XRP has broken below a descending triangle pattern—a bearish formation that typically leads to further downside. Our previous analysis projected a potential 68% drop following this breakdown, and the loss of the $2.00 support level brings that scenario into sharper focus.

With bulls unable to defend key levels, bears now control momentum. The Relative Strength Index (RSI) continues to trend downward, approaching oversold territory. If selling pressure persists, XRP could retest support zones around $1.50** or even **$1.00—and in a worst-case scenario, align with the pattern's projected target of $0.67.

The Moving Average Convergence Divergence (MACD) on the 12-hour chart remains in sell mode, reinforcing downward momentum. Traders are advised to monitor this indicator closely, as a sustained bearish crossover often precedes extended corrections.

Additionally, open interest in XRP derivatives has declined by 16% over the past 24 hours, dropping to $3.07 billion according to Coinglass. During this period, liquidations totaled $38.33 million—$34.63 million from long positions and only $3.7 million from shorts. This imbalance shows that leveraged bulls were heavily punished, adding to downward pressure.

However, there’s a silver lining: the presence of whale buyers may cap further losses. Their accumulation could absorb selling volume and stabilize prices near $1.80—a level that might evolve into new short-term support.

FAQ: Understanding XRP’s Market Dynamics

Q: Why are whales buying XRP when the price is falling?
A: Whales often buy during downturns to accumulate assets at discounted prices. Their confidence typically stems from strong fundamentals, such as rising network activity or upcoming developments in Ripple’s ecosystem.

Q: What does the drop below $2.00 mean for XRP?
A: Losing $2.00 removes a major psychological and technical support level. It increases selling pressure and opens the door to lower targets like $1.50 or $1.00 unless buying interest returns soon.

Q: Is high active address count bullish for XRP?
A: Yes. Rising active addresses indicate increased usage of the Ripple network, suggesting organic growth rather than speculative trading—often a sign of sustainable long-term demand.

Q: How do macroeconomic events affect XRP?
A: Events like tariff announcements or interest rate changes influence investor risk appetite. When uncertainty rises, capital tends to flee risk assets like cryptocurrencies, impacting XRP alongside Bitcoin and Ethereum.

Q: Can whale activity reverse a downtrend?
A: Not immediately—but consistent accumulation can stabilize prices and lay the foundation for a reversal once market sentiment improves.

Q: What role does open interest play in XRP’s price movement?
A: Declining open interest during a sell-off suggests traders are exiting positions, which can accelerate drops. However, if interest begins to rise again on higher volume, it may signal renewed interest.

Final Thoughts: A Battle Between Fear and Accumulation

The current state of XRP reflects a classic tug-of-war between fear-driven selling and strategic accumulation. While technical indicators and derivatives data point to continued downside risk in the short term, on-chain activity and whale behavior suggest underlying strength.

Investors should watch three key levels:

Ultimately, price movements are temporary—but network adoption and smart money flows are enduring signals. Those who understand this distinction may find opportunity in today’s volatility.

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