XRP risks $0.98 decline if 12 whale wallets persist in distribution

The resilience of current price boundaries for XRP is jeopardized by the systematic divestment of tokens by large holders, according to new metrics released by analyst Ali Martinez from the Santiment platform.

Should substantial capital continue to liquidate its holdings, the price of XRP is projected to lose its stability and fall to the $0.98 level, based on the underlying blockchain data.

This potential downturn is compounded by the fact that twelve major market players have initiated a coordinated unloading of their wallets, which threatens to remove essential market support during a significant price correction.

The recent thinning of wallets possessing balances between 10 million and 100 million XRP, dropping from 351 to 339 addresses over recent weeks, signifies a reduction in the fundamental safety buffer that previously mitigated price declines.

Simultaneously, trading platforms have experienced a substantial influx of liquidity, with the total XRP held on exchanges increasing from 11.003 billion to 11.05 billion tokens.

This accumulation of an extra 50 million coins within exchange order books creates a considerable supply overhang, poised to exert downward pressure on the market with even minor negative shifts in the broader environment.

Currently, on the 4-hour timescale, XRP is maintaining a level near $1.30, positioned precariously at the upper boundary of an ascending channel that purchasers have consistently defended since August.

Profit-taking activity from large entities has pushed quoted prices right up against this trend line, establishing the $1.26 level as the primary operational threshold for this autumn period.

The subsequent movement of the token hinges on the ability of this $1.26 level to withstand selling pressure. If this level holds, buyers will be able to fully absorb existing trading volumes, thereby stabilizing the price within the $1.30–$1.43 range and preserving the possibility of another assault on the local high of $1.62.

Conversely, a breach of the $1.26 level would initiate a chain reaction of protective stop orders from buyers; the initial bearish target would be the intermediate support at $1.11, and if that point is penetrated, the downward momentum would accelerate toward the final channel projection at the ... mark, leading to an extended period of consolidation for the asset.

The ability of buyers to stabilize the price at this juncture is entirely contingent upon their willingness to absorb volumes at these critical price points.

These observations highlight how concentrated holdings and liquidity dynamics directly influence the structural integrity of price action within the decentralized finance ecosystem.

Why it matters

This situation highlights how concentrated large-holder activity directly impacts market stability and price action within the DeFi ecosystem. For readers tracking on-chain dynamics, the pressure from whale distribution versus exchange liquidity is a critical indicator of potential downward volatility.