- XRP has faced intensified selling pressure, increasing the risk of breaking a crucial support zone.
- Is Ripple losing its high-reward appeal?
Over the past 48 hours, Ripple [XRP] has experienced significant selling pressure, with 1.12 billion tokens offloaded, driving the price toward the crucial $1.95 — $2 support zone.
Historically, this level has provided strong support, acting as a key accumulation area for buyers. However, with selling pressure still high and market conditions uncertain, can history repeat itself?
Is XRP’s floor about to crack?
So far, XRP has tested the $1.95 — $2 support three times since its December rally to $2.80, each time bouncing back as buyers stepped in.
But this time, the market-wide momentum, especially from Bitcoin [BTC] at $80k, isn’t as strong as before.
Why does this matter? Whale sell-offs are happening just as Bitcoin records four straight days of lower lows, driven by uncertainty over Trump’s ‘reciprocal’ tariff stance on the 2nd of April.
In previous recoveries, Ripple has closely followed Bitcoin’s bounce from $77k. For now, as long as BTC holds above $80k, XRP’s $2 support could stay strong. However, if BTC falters, XRP could face more downside pressure.
A key whale cohort, holding 100M–1B XRP, played a major role in past rebounds. During the late-February dip, they injected $4 billion into XRP, helping it recover to $2.50.
Now, in just two days, these whales have dumped over 2 billion XRP.
Source: Santiment
If whales don’t step in again soon, XRP’s $2 support could be in trouble – especially with growing pressure from both market trends and internal factors.
Short sellers are capitalizing on the uncertainty
With market volatility rising, de-risking is in full swing.
The Estimated Leverage Ratio (ELR) is nearing its March low, showing fewer high-risk trades, while sell orders keep climbing, adding to XRP’s supply in the futures market.
Could a supply shock happen? Maybe. XRP saw 86 million flow out of Binance, surpassing the 77 million in sell orders on the spot market. But it’s not enough to offset pressure from futures and big players.
Adding to the concern, short sellers are capitalizing on weak market sentiment, with Funding Rates (FR) flipping negative for the first time this month – indicating an increasing short bias in perpetual contracts.
Source: CryptoQuant
If this trend continues, a long squeeze could push XRP below $1.95.
With longs dominating derivatives until now and no major accumulation in sight, Ripple’s key support is at risk – especially if Bitcoin loses ground after the tariff news.
