XRP faces renewed selling pressure as large-holder balances decline and exchange reserves rise. Analysts are watching the $1.25–$1.26 support zone for signs of a deeper correction or a potential rebound.
XRP is facing renewed downside risks as changes in whale holdings and rising cryptocurrency exchange balances raise concerns about potential selling pressure. According to a market analysis published by Finbold and republished by CryptoNews.net, XRP could fall toward $0.98 if it breaks below a key support zone near $1.25–$1.26.
At the time of the report, XRP was trading around $1.29, up approximately 0.20% over the previous 24 hours. However, the token remained below its 50-day simple moving average (SMA) of $1.40, indicating that its short-term price momentum was still weak.
XRP was trading only slightly above its 200-day SMA of $1.28, a level that could become important if selling pressure intensifies.
Whale Activity Raises Concerns About XRP’s Price
Cryptocurrency analyst Ali Martinez highlighted changes in XRP whale holdings and exchange balances in a post on X dated October 27.
According to the analysis, the number of wallets holding between 10 million and 100 million XRP declined from 351 to 339 over several weeks. At the same time, XRP balances on cryptocurrency exchanges increased by approximately 50 million tokens, reaching 11.05 billion XRP.
These developments have raised concerns about a potential increase in selling pressure. Large holders can influence market sentiment because their transactions may involve substantial amounts of a cryptocurrency.
However, rising exchange balances do not automatically mean that investors intend to sell. Tokens may also be transferred for liquidity management, trading or other purposes. The combination of declining large-wallet counts and higher exchange balances therefore represents a risk signal rather than definitive evidence of an imminent sell-off.
XRP Price Prediction: Why $1.25–$1.26 Matters
The $1.25–$1.26 range has emerged as a critical support zone for XRP. Market participants will be watching whether buyers can defend this level and prevent a deeper correction.
If XRP breaks decisively below this zone, the next downside target identified in the analysis is around $1.11. A further decline could expose the token to $0.98, potentially erasing a significant portion of its recent recovery.
On the other hand, holding above support could help XRP stabilise and attempt another recovery. Traders will need to monitor trading volume, broader cryptocurrency market sentiment and the behaviour of large holders to assess the strength of any rebound.
These price levels are technical scenarios, not guaranteed outcomes. Market conditions can change rapidly, particularly when liquidity and investor sentiment are shifting.
Technical Indicators Point to Weak Momentum
Several technical indicators suggest that XRP remains under pressure.
The token’s 14-day Relative Strength Index (RSI) stood at 40.20, below the neutral level of 50 but above the conventional oversold threshold of 30. This indicates relatively weak momentum without confirming that XRP has reached an oversold condition.
XRP also recorded 13 positive trading days out of the previous 30, equivalent to approximately 43%. Reported volatility stood at 6.01%.
The price’s position below the 50-day moving average adds to the cautious technical picture, while its proximity to the 200-day moving average makes the $1.28 area another level to monitor.
Together, these indicators suggest that XRP has yet to establish a convincing recovery trend.
Could XRP Rebound Despite the Bearish Outlook?
Despite the risks, the outlook is not entirely negative. Martinez also highlighted a potential buy signal from the TD Sequential indicator on XRP’s three-day chart.
According to the analyst, the three previous comparable signals were followed by rebounds of approximately 31.26%, 24.38% and 18.65%.
The indicator may suggest that selling pressure is weakening or that a relief rally could develop. However, historical signals do not guarantee similar future price movements, and the indicator alone cannot confirm a market bottom.
XRP had previously rebounded approximately 71.88% from its August low near $0.92 to around $1.60 before reversing lower. Its subsequent decline toward $1.29 shows that the earlier recovery has struggled to hold.
For bulls, defending the $1.25–$1.26 support zone will be important. A sustained recovery would require buyers to regain control and push the price back toward higher resistance levels.
What XRP Investors Should Watch Next
XRP’s immediate direction will likely depend on three factors: whether the $1.25–$1.26 support zone holds, whether exchange balances and whale activity continue to signal potential selling pressure, and whether the broader cryptocurrency market improves.
A breakdown below support could open the way toward $1.11 and, in a deeper correction, $0.98. Conversely, a successful defence of support combined with improving buying activity could allow XRP to attempt another rebound.
For investors and traders, the key takeaway is that XRP is approaching an important technical decision point. Whale movements, exchange balances and momentum indicators provide useful context, but none can predict the market with certainty.
