XRP Cracks Below $2.20, but Analysts Call It a Classic Fear Flush Before the Big Bounce

XRP slid below $2.20 after whales dumped $200 million in tokens, but analysts argue the selloff looks more like a classic shakeout than a full trend break, especially after the price quickly rebounded toward $2.26 on Monday morning.

XRP (XRP-USD) slipped to about $2.17 on Monday after a burst of whale selling sent more than 200 million tokens onto exchanges. The drop pushed XRP down about 3.5% over the past day, and traders are now trying to sort out whether this latest slide is a genuine trend shift or just another panic-driven shakeout inside a long-term range.

The move comes at a tense moment for the broader market. ETF volumes have been choppy, sentiment has weakened, and cross-asset volatility has climbed. Even so, several analysts argue that XRP’s structure still points to a potential rebound once selling pressure cools.

Whales Accelerate Selling and Apply Short-Term Pressure

Heavy outflows from major wallets kicked off the decline. On-chain data from Santiment flagged nearly 200 million XRP moving out of whale-controlled addresses over a 48-hour stretch ending November 15. Blockchain researcher Ali said this sell wave lined up with XRP’s slip from the $3 zone to roughly $2.25.

Independent tracking showed more than $400 million worth of XRP heading toward centralized exchanges such as Binance and Coinbase (COIN). Moves of that size are often interpreted as preparation for potential selling since tokens shift from long-term storage to more liquid venues.

At the same time, the selling arrived shortly after the new Canary Capital XRP ETF delivered a record $58 million opening day. This debut set the high mark for all 2025 ETF launches, which signals that institutional interest is alive even if price is not reflecting it at the moment.

Analysts Interpret the Drop as a Shakeout

Sharp pullbacks tend to rattle retail traders, yet a number of market watchers insist the decline still resembles old patterns rather than the start of a deeper collapse. Commentator Steph Is Crypto said XRP remains primed for a hard rebound and urged traders not to misread fear-driven wicks.

His chart highlights repeated capitulation zones where extreme fear readings turned out to be bottom markers. Several traders echoed the same theme and noted that whale distribution often peaks near the end of a pullback rather than the beginning.

XRP’s Technical Signals Reveal a Fragile but Still Intact Structure

Some technicians are more cautious. A TradingView analyst pointed to a possible double-top on the monthly chart, which can signal slowing momentum. The same report outlined key levels traders are watching now.

The $2.10 support is the closest line preventing deeper downside. A weekly close below $1.90 could set up a slide toward the $1.90 to $1.88 area. The analyst said XRP still trades inside a slow-descending channel that resembles a corrective pattern rather than a full breakdown. A move under $2.00 could expose the $1.60 demand zone, although the longer-term uptrend still holds above that region.

As Monday’s session got underway, price action steadied. XRP climbed back to about $2.26, showing that buyers were willing to step in after the weekend flush and defend the lower range.

ETF participation and Ledger activity remain the anchors supporting the long-term case. The market will look for confirmation through stabilization in volume and improved risk appetite.

The latest leg lower has revived the same debate that tends to surface during heavy distribution periods. Some traders see vulnerability and a fading trend. Others believe XRP is repeating earlier cycles where forced selling made room for later accumulation.

XRP traded near $2.27 at the time of writing.