TLDR
- XRP whale accumulation reached 280 million tokens in 10 days while a large 16.8 million XRP transfer to Coinbase sparked sell-off concerns
- Price dropped 10.3% to $3.11 with critical support at $3.10 under pressure after failing to hold $3.66 resistance
- Network growth and transaction count collapsed on July 24th with network growth falling to 1,899 and transactions dropping to 286K
- Technical indicators show bearish MACD crossover while Cup and Saucer pattern suggests potential continuation of upward trend
- SEC approved Bitwise 10 Crypto Index Fund including XRP before staying the decision for review
Ripple’s XRP token faces a crucial test at the $3.10 support level following a 10.3% price drop in 24 hours. The cryptocurrency traded at $3.11 at press time after retreating from its recent peak of $3.66.
Whale activity has sent mixed signals to the market. Over 280 million XRP tokens were accumulated by large holders in just ten days. This accumulation typically indicates long-term confidence from institutional players.
However, an unknown wallet transferred 16.8 million XRP worth over $54 million to Coinbase. Large exchange inflows often precede selling pressure as holders position tokens for potential liquidation.
The $3.10 level represents a critical technical zone for XRP. This price point previously acted as resistance and now serves as potential support. A failure to hold this level could trigger further declines toward $2.63.
Technical indicators paint a cautious picture. The MACD lines crossed bearishly, suggesting declining momentum. The price structure shows indecision among traders as bulls and bears battle for control.
On-Chain Metrics Show Concerning Trends
Network activity data reveals a sharp decline in user engagement. Network growth and transaction counts peaked between July 18-22 before collapsing on July 24.
Network growth plummeted to just 1,899 users. Transaction count dropped to 286,000, marking a steep decline from mid-July highs. This sudden collapse in on-chain activity disrupts the bullish narrative surrounding XRP’s recent rally.
The MVRV Z-score cooled to 3.49, easing immediate profit-taking risks. The metric had reached overheated levels earlier in the month. However, the NVT ratio remained elevated at 699.
An inflated NVT ratio suggests XRP may be overpriced relative to its actual network utility. This imbalance between price and usage often precedes market corrections or extended consolidation periods.
Technical Pattern Offers Hope for Bulls
Despite near-term concerns, technical analysis reveals a potentially bullish Cup and Saucer pattern forming on XRP’s price chart. Crypto analyst Cryptinsightuk highlighted this formation following double rejection from the $3.65 resistance level.
$XRP forming a Cup and Saucer pattern on the hourly
Important to note, after rejecting $3.65 a second time, $XRP still continues to create higher lows currently.
I would say this pattern is a continuation pattern and more likely to breakout / continue than break down.
NB This… pic.twitter.com/0O0ICTDGDd
— Cryptoinsightuk (@Cryptoinsightuk) July 22, 2025
The pattern shows XRP continuing to form higher lows despite resistance rejections. This technical structure typically indicates sustained bullish momentum when formed above previous range highs.
If the Cup and Saucer pattern completes as expected, XRP would need to break above $3.65 resistance. A successful breakout could put the cryptocurrency back on track toward new all-time highs above $3.8.
Recent regulatory developments have added complexity to XRP’s outlook. The SEC approved the Bitwise 10 Crypto Index Fund, which includes XRP among its holdings. However, the commission subsequently stayed the decision and placed it under review.
This development follows the approval of the first XRP ETF for trading last week. Grayscale has also applied to convert its Digital Large Cap Fund, which holds XRP, into an ETF structure.
The disconnect between strong whale accumulation and collapsing network metrics creates uncertainty for XRP’s immediate direction. Bulls must defend the $3.10 support level to maintain upward momentum while network activity needs to rebound to justify current valuations.
