XRP Price Eyes $4 Breakout as Whale Selling Pressure Drops 93%

XRP Shows Renewed Strength After Consolidation Phase

The XRP price climbed nearly 3% today, demonstrating renewed strength following a quiet week of consolidation. With momentum building across the cryptocurrency market and trading around $3.28, XRP is approaching a critical breakout zone that could significantly impact its long-term trajectory.

Whale Selling Activity Decreases Dramatically

One of the most positive signals supporting XRP's bullish outlook is the substantial reduction in whale-to-exchange flows. This key metric tracks large holder movements to exchanges, typically indicating preparation for selling activity.

On July 11, whale-to-exchange flows peaked at 43,575 XRP. By July 28, this figure plummeted to just 2,965 XRP, representing a massive 93.2% decrease. This dramatic reduction signals that major holders are no longer offloading their positions with the same intensity as before.

However, current flow levels remain nearly double what they were on July 25, suggesting that while immediate selling pressure has eased, the market may still experience some volatility during the transition period.

Accumulation Signals Emerge Through Technical Indicators

Supporting the whale selling reduction is a clear divergence pattern on the Chaikin Money Flow indicator. While XRP's price has been forming lower highs, the CMF has printed higher highs, indicating steady capital inflow into the asset.

This divergence becomes particularly significant when combined with decreased whale selling activity. As larger holders step back from the market, the gap appears to be filled by more distributed accumulation patterns from smaller investors.

The CMF tracks volume-weighted accumulation over time, and divergences like this often signal early accumulation phases that precede significant price movements.

Critical Breakout Level at $3.37

XRP price is currently approaching a crucial breakout zone at $3.37, which aligns with a critical extension level in the current rally structure. A successful break above this level could flip it into support and open the door to higher targets.

If XRP breaks above $3.37, the next resistance levels emerge at $3.62, near the current all-time high, and $3.83. Both milestones would position XRP for a potential run toward the psychological $4.00 level.

Path to New All-Time High

A breakout beyond $3.62 would be particularly significant as it would establish new all-time high territory for XRP. This scenario becomes more likely given the current technical setup and reduced selling pressure from major holders.

The combination of decreased whale selling, positive money flow divergence, and proximity to key resistance levels creates a favorable environment for upward price movement.

Downside Risk Considerations

Despite the bullish setup, traders should be aware of potential downside risks. A breakdown below $2.96, which represents the 0 Fibonacci extension level, would invalidate the current bullish structure in the short term.

Such a breakdown could expose XRP to further downside pressure and potentially delay any move toward establishing new all-time highs.

Market Context and Outlook

The current XRP price action occurs against a backdrop of broader cryptocurrency market strength. With major cryptocurrencies showing renewed momentum, XRP appears well-positioned to participate in any sustained market rally.

The 93% reduction in whale selling pressure, combined with accumulation signals from technical indicators, suggests that XRP may be preparing for its next major move higher. However, successful navigation of the $3.37 resistance level remains crucial for confirming this bullish scenario.

Traders and investors should monitor whale activity levels and volume patterns closely as XRP approaches these critical technical levels in the coming sessions.

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