XRP price decreases by 5% today, causing sell-off interest

try needs signs of stabilization, such as slowing inflows and strong support at the $2.15–$2.22 level. Despite whale selling and weak support driving XRP lower, institutional interest continues to be robust. While the short-term view appears uncertain, there are indicators worth monitoring for a potential long-term investment position.

XRP’s current price hovers around $2.13, reflecting a recent decline of 10–12% following significant transfers of tokens from large holders to exchanges. This influx of tokens intensified the selling pressure during a period of sustained institutional interest, resulting in a volatile market response rather than a steady ascent. The selling pressure was not evenly distributed but rather occurred in clusters, disrupting the typical trading flow and leading to the recent drop in XRP’s price.

The recent on-chain activity revealed substantial transfers from major wallets, with almost 200 million XRP tokens moved within a short period. Such large transactions often create rapid liquidity sources, contributing to the downward pressure when tokens are deposited on exchanges. This occurred amidst increasing attention on XRP, enabling large holders to divest their tokens without significant slippage. Moreover, broader market softness, as traders reduced leverage and shifted towards safer assets, added to the downward pressure on XRP’s price.

Over 41% of XRP’s total supply currently sits at a loss, indicating a potential for sharper price reactions during market downturns. Elevated exchange inflows remain a critical indicator to watch, as continued increase suggests further downside potential, while a slowdown could stabilize prices. From a technical perspective, the $2.15–$2.22 range serves as crucial support that buyers need to defend. A decisive breach below this level could expose the previous swing area at $1.57. Monitoring volume dynamics will also be essential in confirming the market’s next direction, with rising volume on down moves signaling continued selling pressure and steady volume indicating a potential price stabilization.

For investors considering entering XRP now, a calculated approach that entails gradual scaling in may mitigate timing risks associated with market volatility. Ideal conditions for a potential entry point would include diminishing exchange inflows, resilient buyer responses at key support levels, and reduced large wallet transfers. Patience is key in navigating the current market environment, which rewards a steady and cautious investment strategy. Considering XRP’s significant discount from its 52-week high of $3.65 and all-time high of $3.84, this could represent an attractive opportunity for long-term investors seeking to capitalize on discounted prices.