XRP (XRP-USD) is struggling to hold above the $3 level after a rally that fizzled out as quickly as it started. The move now looks like a fakeout, with charts flashing bearish patterns and onchain data showing whales taking money off the table. For an asset that relies so heavily on community momentum, the lack of follow-through has traders asking whether the XRP Army has lost some of its edge.
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XRP Forms Bearish Patterns
The XRP price has been forming a descending triangle on the daily chart since it spiked to multi-year highs at $3.66. This situation, which pairs a flat support with lower highs, usually hints at a continuation downward. The brief breakout above the triangle looked promising, but it failed fast as buyers could not hold $3.
Now, the 50-day moving average is sitting right at that level, making $3 an important battlefield. If XRP cannot reclaim it, the next support levels to watch sit around $2.70, then $2.50 at the 200-day average. Technicals even suggest a possible slide all the way down to $2.06, which would mean giving up more than 30% from current prices.
Whales Dump XRP Holdings
Onchain data shows that large holders wasted no time unloading their bags once XRP touched $3.10. Addresses holding between 1 million and 10 million XRP have shed more than 160 million tokens in the last two weeks, worth nearly half a billion dollars. Their total holdings are now at a six-week low.
This wave of selling suggests that whales expect lower prices ahead, despite bullish headlines about spot ETF approvals and possible Fed rate cuts. Adding to the pressure, exchange reserves for XRP jumped by 665 million tokens over the past two weeks, swelling the supply available to sell into the market. This is rarely a bullish signal.
XRP Loses Network Activity
Perhaps more concerning is what is happening under the hood. XRP Ledger activity has dropped sharply over the past two months. Daily active addresses are now around 21,000, less than half of the 50,000 peak seen in July. New addresses have fallen even harder, from 11,000 per day earlier this year to just 4,300 now.
Lower participation often translates into weaker price action. Without fresh buyers and steady transaction volume, rallies run out of steam faster. For XRP, which thrives on the narrative of adoption and network strength, the drop-off raises doubts about whether traders and users are still as committed as they once were.
XRP Faces a Test
The XRP Army has long prided itself on defending price levels and pushing back against bearish sentiment. But with whales cashing out, network activity fading, and the price stalling below $3, the community is facing one of its toughest tests in years.
If bulls cannot reclaim the $3 line with conviction, the charts suggest a slide toward $2 could be next. And while XRP has defied the odds before, the question now is whether the same energy that once fueled its strongest rallies is still there.
At the time of writing, XRP is sitting at $3.
