XRP has fallen below $1.40 after a sharp rejection from its multi-month peak near $1.70, and two on-chain metrics point to further weakness. Whale wallets that fueled the rally have flipped to selling, while daily active addresses have plunged more than 90% from their recent peak.
XRP surged from the psychological support at $1.00 to a multi-month peak of $1.70 within 72 hours after its August 19 breakout, but the move has since reversed hard. The token lost the $1.60, $1.50 and $1.40 support levels on the way down and now trades below the last of those, with on-chain data pointing to more downside.
Whales Reverse Course
The breakout traced back largely to whale buying. Large holders scooped roughly 400 million tokens within about a week ahead of the rally, alongside a jump in network activity. Since then, though, the same investors have turned sellers, according to analyst Ali Martinez.
Citing Santiment Intelligence, Martinez said the pullback appears to be driven in part by profit-taking, with whales selling or redistributing roughly 90 million XRP over the past week. Such moves from large holders tend to add direct selling pressure, and they can also prompt retail investors who often copy whale behavior.
Network Activity Craters
Daily active addresses have plunged more than 90% from a peak of 388,492 to 38,163 during the correction. Martinez said this points to a "significant drop in participation during the correction."
Martinez added that XRP has found critical support near $1.35, where 2.29 billion tokens previously traded. If that level holds, he said the token could rebound toward $1.60 or even $1.68 next.
Source: CryptoPotato
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