On March 2, XRP surged 34.15% following U.S. President Donald Trump’s announcement that the altcoin would be part of the U.S. strategic crypto reserve, alongside Solana (SOL) and Cardano (ADA).
However, the excitement was short-lived. XRP retraced 50% of its gains by March 3, sparking concerns about a potential distribution phase among large investors.
Whale Activity Signals Massive XRP Sell-Off
CryptoQuant founder Ki-Young Ju pointed out that large XRP addresses are offloading their holdings. Using a volume bubble map, he highlighted heightened trading activity between $2 and $3 over the past month.
While high-volume activity can signal accumulation, Ju believes XRP is in a classic distribution phase, where whales gradually sell their holdings near the top of a market cycle.
📉 Key On-Chain Data Highlights:
- Whale Flow at Record Lows: On-chain analyst Maartunn confirmed that whale flows (30-day moving average) have dropped to an all-time low, signaling mass selling.
- Binance Exchange Reserves Surge: XRP reserves on Binance jumped from 2.72 billion to 2.90 billion tokens, further reinforcing selling pressure.
Can XRP Hold Above $2.50?
Despite the recent pullback, some analysts believe XRP could still make a comeback—if it holds key support levels.
🔹 Support & Resistance Levels to Watch:
- Crucial Support: $2.50 – Losing this level could signal further downside.
- Key Resistance: $2.70 – The volume-weighted average price (VWAP) must be reclaimed for XRP to regain momentum.
Analysts Are Divided on XRP’s Future
📈 Bullish Case: Crypto investor Dami DeFi remains optimistic, citing an ascending trendline and higher-high consolidation. He believes that if Trump continues backing XRP, breaking key resistance could trigger “price discovery.”
📉 Bearish Case: Bitcoin advocate Matt C argues that XRP’s rally is merely “exit liquidity” for larger investors. He pointed to an inverse head-and-shoulders formation on the daily chart, suggesting that RSI is forming lower highs—an early sign of exhaustion.
Conclusion: Is XRP’s Bull Run Over?
XRP’s massive rally fueled by Trump’s announcement is now facing resistance as whale sell-offs accelerate. While bullish traders eye a breakout above $2.70, the increase in exchange reserves suggests heightened selling pressure.
If XRP fails to hold $2.50, it could enter a deeper correction phase. However, a successful push above resistance levels could reignite bullish momentum.
Will XRP bounce back, or is this the beginning of a prolonged correction? Stay tuned for more market updates.
