XRP Price Faces Critical Test as Whale Activity Increases

XRP has declined nearly 10% over the past month, trading at around $2.96 as of now, amidst mixed signals in the broader market. In contrast, other assets like Ethereum are experiencing upward movements.

A CryptoQuant analyst highlighted that XRP’s recent price action follows a rally earlier in 2025 when it reached $3.5 to $4, attributed to increased exchange inflows from large holders indicating profit-taking. This inflow activity is currently applying pressure on XRP's price.

XRP Exchange Inflow Data Points to Profit-Taking

The analyst PelinayPA noted significant exchange inflow transactions precede XRP price peaks, citing previous cycle tops in 2018, 2021, and 2023.
Current inflows suggest whale selling pressure, with high-value inflows indicating short-term selling.
The report outlines scenarios based on XRP maintaining support above $3.00.
If support holds, potential resistance levels are between $4.2 and $4.5; if breached, prices could trend towards $2.8.
Long-term projections remain optimistic, with possibilities of reaching new highs above $5 later in 2025.

Technical Levels Signal Make-or-Break Moment

Technical indicators emphasize the importance of the $2.95 level, corresponding to the 0.618 Fibonacci retracement.
Sustaining above this level could lead to targets at $3.33 and $3.57, while breaking beyond $4.6–$5.2 may initiate new price discovery.
Failure to maintain this support risks further declines, with $2.65 identified as the next significant level.
The upcoming movement is critical for determining XRP's trajectory for the remainder of the year.