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Ripple transferred 130 million XRP, raising concerns about a short-term price drop amid whale activity.
XRP formed a death cross, with technical indicators signaling a potential dip toward the $2 mark.
Bullish catalysts like RLUSD and ETF filings offer hope for a rebound if institutional momentum holds.
Ripple has moved over $283 million worth of XRP in large on-chain transfers, sparking renewed concerns about a potential price drop. Combined with bearish chart patterns, such as the dreaded "death cross," the XRP price is showing signs of weakness despite broader optimism surrounding institutional adoption, ETF applications, and Ripple’s upcoming stablecoin launch.
On June 2, on-chain tracker Whale Alert reported a series of significant XRP movements originating from Ripple-controlled wallets. The transactions totaled 130 million XRP, valued at over $283 million, and were split across three separate transfers to unknown wallets.
The largest was 50 million XRP sent to the wallet “DJoAys,” followed by two transactions of 40 million XRP each. These occurred shortly after Ripple's routine escrow unlocks, which already contribute monthly selling pressure to the market.
Interestingly, blockchain data shows that one of the recipient wallets may be linked to Ripple Chairman Chris Larsen, echoing similar patterns seen in previous months.
These transfers, while not inherently bearish, have amplified community speculation that Ripple may be preparing to liquidate XRP or redistribute holdings, moves that often foreshadow short-term price corrections.
At press time, XRP is trading near $2.16, with intraday fluctuations between $2.13 and $2.19. On the daily chart, a notable 'death cross' has formed where the 50-day Simple Moving Average (SMA) crosses below the 200-day SMA, historically seen as a bearish signal.
The Relative Strength Index (RSI) is hovering around 40, nearing oversold territory, which suggests weakening momentum and possible further decline. Additionally, the price is slipping below the lower Bollinger Band, indicating a trend that could extend downward unless there’s a sharp recovery.
Volume data offers little comfort. While there has been a 4% uptick in trading volume over the past 24 hours, it remains subdued, reflecting cautious sentiment among traders still grappling with macroeconomic concerns like US tariff uncertainty.
Despite the short-term bearish outlook, Ripple continues to roll out major ecosystem updates. Most notable is the announcement of RLUSD, Ripple’s USD-backed stablecoin, scheduled to launch on December 17, 2025.
RLUSD is designed to enhance on-chain liquidity and usability within RippleNet and DeFi protocols, and the company has pledged monthly third-party attestations to ensure transparency.
If adoption follows, this move could be pivotal in increasing XRP’s utility and potentially stabilizing its price.
Also Read: Will XRP Overtake Ethereum in 2025? Battle for the Altcoin Crown Intensifies
Meanwhile, institutional sentiment toward XRP remains robust. CoinShares reported that XRP investment products attracted $145.8 million in inflows last week, up from $134.3 million the week prior, suggesting increasing confidence despite market consolidation.
Several major players, including Bitwise, WisdomTree, and 21Shares, have filed for XRP spot ETF approvals with the US SEC. These filings represent a crucial step toward mainstream acceptance and could trigger a fresh wave of inflows if approved, echoing the success of Bitcoin ETFs earlier this year.
Although XRP is under pressure, several analysts remain optimistic. According to EGRAG Crypto, if Bitcoin manages to break past the $120,000 - $130,000 mark, XRP could follow with an explosive move to $7 - $8.
Additionally, CrediBULL Crypto foresees a longer-term scenario in which XRP reaches a $1.2 trillion market cap by early 2025. That would require XRP to trade at around $22, an 800% increase from current levels.
Much of this optimism rests on the successful rollout of RLUSD, ETF approvals, and the resolution of Ripple’s long-standing legal battle with the US SEC. Notably, SEC Chair Gary Gensler’s resignation and upcoming court briefs in January 2025 have added fuel to the bullish sentiment.
XRP finds itself at a critical juncture. On the one hand, bearish technical patterns like the death cross and slow trading momentum suggest a possible slide toward $2 or below in the short term. On the other hand, bullish fundamentals, including increased institutional interest, whale accumulation, and ecosystem growth via RLUSD, point to a potentially strong recovery.
Whether XRP rebounds or dips further will depend on broader macroeconomic conditions, regulatory clarity, and the execution of Ripple’s roadmap.
Also Read: Google’s AI Puts Spotlight on XRP as the Future of Cross-Border Payments
