XRP Drops Below $2.20: Analysts Predict a Rebound After Fear Flush

XRP recently dipped below the $2.20 mark, reaching approximately $2.17 on Monday, following significant selling activity by whale investors. Over a 48-hour period, these investors moved more than 200 million XRP tokens to exchanges, contributing to a 3.5% decline in its value.

XRP Market Overview

The current market conditions are tense. ETF volumes have been inconsistent, market sentiment is weak, and overall volatility has increased. Despite this, some analysts suggest that XRP may rebound as selling pressure decreases.

Whale Selling Trends

The significant outflows from large wallets initiated the recent downturn. On-chain data from Santiment revealed that nearly 200 million XRP left whale-controlled addresses just before November 15. This mass selling coincided with XRP’s drop from the $3 region to about $2.25.

• Over $400 million worth of XRP transferred to centralized exchanges like Binance and Coinbase.
• This type of transaction often signals potential selling as tokens shift from long-term holding to more liquid platforms.

Impact of ETF Launches

The decline followed the launch of the Canary Capital XRP ETF, which achieved a remarkable opening day total of $58 million. This performance set a new record for 2025 ETFs, indicating enduring institutional interest despite the current price challenges.

Analysts’ Perspectives

Market analysts have varied interpretations of XRP’s price movements. Some believe the current drop is merely a shakeout, aligning with historical behaviors where extreme fear readings signal potential reversal points.

• Commentator Steph Is Crypto highlighted that past patterns indicate XRP could be primed for recovery.
• Analysts note that selling from whales often peaks toward the end of a downturn, suggesting potential buying opportunities.

Technical Analysis

Some technical analysts are taking a more cautious stance. They identified a potential double-top pattern on monthly charts, signaling possible slowing momentum. Key support levels are as follows:

• $2.10 – immediate support preventing further declines.
• $1.90 – critical level; if breached, it could lead to a drop to between $1.90 and $1.88.

Although the current trend seems to show a slow descent, XRP remains in a long-term uptrend above $1.60. As the trading day progressed on Monday, XRP managed to recover slightly to around $2.26, indicating some buyer interest after recent sell-offs.

Looking Forward

For the market to stabilize, analysts are watching for signs of robust trading volume and a shift in risk appetite. Discussions continue regarding potential vulnerability in the XRP trend versus the possibility of accumulating during forced selling phases. At the time of reporting, XRP was trading near $2.27.