XRP finds itself at a critical juncture as the cryptocurrency navigates turbulent waters, trading around $2.96 as of today, August 26, 2025. Recent data reveals a 10% slip over the past month, contrasting starkly with Ethereum’s new highs. The volatility has intrigued analysts and investors alike, who are keenly observing whether XRP can stabilize or if further corrections are on the horizon.
Whale Activity and Exchange Inflows
The narrative around XRP is increasingly focused on the actions of large holders—often referred to as “whales.” According to CryptoQuant analyst PelinayPA, significant inflow activity from these whales has historically aligned with price peaks. This was evident during XRP’s past surges in 2018, 2021, and again in 2023. Fast forward to early 2025, and XRP witnessed a rally to $3.5–$4, with high-volume inflows suggesting substantial profit-taking by major holders. This pattern appears to be repeating, with continued inflow signaling short-term selling pressure.
“XRP’s exchange inflow data is crucial,” PelinayPA emphasized. “The high influx, particularly in bands holding 100K to over a million XRP, points to persistent whale selling pressure.” The analyst posits that if XRP can maintain the $3 support level, it could serve as a launching point for another upward attempt, potentially targeting resistance levels between $4.2 and $4.5. For more insights into XRP’s potential upside, see XRP Price Action Signals Strength, More Upside Potential Ahead.
Technical Analysis: The Make-or-Break Zone
In addition to on-chain data, technical analysis is offering insight into XRP’s precarious position. A popular analyst on X, dubbed “XRP Update,” underscored the significance of the $2.95 mark, aligning with the 0.618 Fibonacci retracement—a critical support zone. “Holding above this level could pave the way to $3.33 and $3.57,” they noted. “Breaking beyond $4.6–$5.2 would see XRP entering uncharted price territories.”
However, the flip side is equally compelling. Should XRP fail to hold this line, the cryptocurrency might find itself heading toward $2.65, a scenario that echoes the caution seen in on-chain metrics. Such a dip could redefine XRP’s trajectory for 2025, raising questions about its potential for recovery in the latter half of the year. This aligns with recent observations in Watch Out For XRP and Solana as Price Action Flashes Bullish Signals, Analyst Says.
Historical Context and Future Possibilities
This moment is not without precedent. XRP has weathered similar storms before, only to emerge with renewed vigor. Its past demonstrates that while whale activity often precedes corrections, it also sets the stage for new opportunities. The market’s current mixed signals, with Ethereum reaching new heights, add layers of complexity to XRP’s narrative.
Looking ahead, the broader crypto market’s direction will undoubtedly influence XRP’s path. The resilience shown in previous cycles provides a glimmer of hope for investors, but the landscape remains fraught with uncertainty. As PelinayPA suggests, the structural uptrend of XRP compared to earlier cycles leaves room for optimism about reaching new highs above $5 later this year.
The coming weeks will be pivotal for XRP, as market participants weigh the potential for gains against the risks of further decline. As traders and analysts keep a close eye on technical levels and whale movements, the cryptocurrency community remains on edge, awaiting the next significant move that could define XRP’s fate for the remainder of 2025.
Source
This article is based on: XRP at a Crossroads: Whale Activity Signals a Critical Price Test Ahead
Further Reading
Deepen your understanding with these related articles:
- Crypto Price Analysis August-22: ETH, XRP, ADA, BNB, and HYPE
- Key Date for XRP Holders Revealed, Shiba Inu Sees Mini-Golden Cross, $80 Billion in Ethereum in 24 Hours — Crypto News Digest
- More Pain Ahead? Bitcoin and Ethereum Charts Show Mixed Signals: Analysis
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
