XRP's Bull Run Over at $3.65? What’s Needed for a Revival?

By: WEEX|2025/08/06 08:46:09
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Key takeaways:

  • XRP saw the third-largest long liquidation on Binance this year.

  • The higher time frame trend stays bullish, with bulls defending the $2.95–$3.00 support.

  • XRP hit its highest daily and weekly close above $3.45 last week but has since fallen nearly 10%.

  • Wednesday’s 10.33% drop was XRP’s sharpest daily decline since April 6.

Futures open interest (OI) plunged 16.8% to $9.10B from $10.94B, signaling leveraged traders may be exiting or facing liquidations, reducing short-term speculative momentum.

XRP faces the third-largest liquidation of 2025

XRP's recent price drop coincides with increased whale movements and massive long liquidations. Blockchain data reveals a wallet linked to Ripple co-founder Chris Larsen transferred over 50 million XRP ($140M) to exchanges, with outflows accelerating since mid-July—peaking at 84 million XRP last Friday before dipping to 42 million on Thursday.

This sell pressure contributed to Binance's third-largest XRP long liquidation event this year, erasing ~$86M in leveraged positions within hours. Despite the turbulence, whale accumulation persists—2,743 wallets now hold 1M+ XRP each, totaling 47.32B tokens (4.4% of supply).

However, CryptoQuant data signals a potential shift: XRP’s 90-day whale flow average has turned negative, hinting at large-holder distribution. Notably, this metric flipped bullish in early May, preceding XRP’s rally—its current reversal may now indicate a local top.

Can XRP bulls defend this key level?

While XRP has retreated 10% this week, its higher timeframe bullish trend remains firm, supported by last week's multi-month peak. The $2.95-$3.00 zone now serves as critical support, with Thursday's dip briefly sweeping liquidity just above this level.

A decisive move above $3.25 could confirm a bullish reversal on lower timeframes, potentially cementing $2.95 as a local bottom. However, sustained selling pressure may push XRP toward the next liquidity pool at $2.66-$2.86.

The $2.64 level - previously a multi-week resistance in Q2 - now stands as major support, potentially acting as a demand zone. Bulls maintain control unless consecutive closes below both $3.00 and $2.64 occur, which would signal a potential trend reversal and open the door for deeper downside.

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