XRP Price Rebounds 30% as Whales Prepare for Potential Sell-Off

This price rebound comes after XRP investors realized nearly $2 billion in profits over the past three days, marking one of the highest profit-taking

After dropping to lows of $1.70 during the recent crypto market crash, XRP price has rebounded by 30%, signaling a potential bullish move ahead.

The price decline was influenced by economic policy changes, particularly President Donald Trump’s announcement of tariffs on imports from Canada, Mexico, and China. The news triggered a wave of selling activity, causing major cryptocurrencies to plunge in value. However, as the market digested the impact of these tariffs, XRP has rebounded sharply, attracting renewed bullish sentiment.

According to on-chain data, the heavy selling came from both long-term and short-term investors, leading to significant spikes in dormant circulation. Heavy selling was witnessed, which pushed the weighted sentiment of XRP to levels last seen in November.

Funding rates for XRP also plummeted to lows last observed in August, reflecting bearish sentiment among derivatives traders. However, historically, such negative sentiment often preceded a strong recovery as the market tended to move in the opposite direction when extreme pessimism set in. This appears to be playing out for XRP, which has bounced back impressively despite the recent uncertainty.

Following the crash, XRP dropped below the $2.00 psychological level, triggering $103 million in futures liquidations within a single day—the highest recorded liquidation event for the token in this market cycle. As the broader market began to rebound, XRP price reclaimed some key levels and is currently targeting the $3.00 mark.

Technical indicators reveal that the XRP price is very close to a possible breakout. The RSI and Stochastic Oscillator are trending upwards, indicating an increase in bullish momentum. If XRP can break above the descending trendline resistance, which has been in place since January 16, it could retest the important $3.40 resistance. A strong move above this level may open up the possibility of an all-time high above $3.55.

While the rally by XRP was impressive, on-chain metrics have tended to suggest that whales have been preparing for a new sell-off. In the last 24 hours alone, over $80 million worth of XRP has been sent to exchanges—a possible sign of profit-taking activity.

However, technical analysts remain optimistic about the XRP trajectory. For the rally to sustain, the token needs to hold the momentum and close above $2.70 or $2.65 in the short term. Failure to hold these levels could see XRP pull back toward $1.96, thereby invalidating the bullish scenario.

The general cryptocurrency market is sensitive to changes from a geopolitical and economic policy perspective. Decisions with regard to tariffs by President Trump proved effective in changing market sentiment, as considerable fluctuations in digital asset prices were observed. Bitcoin and some other major cryptocurrencies faced steep declines before recoveries, which has proved how volatile today’s market atmosphere is.

Going forward, investors are keenly watching developments in policy and market trends to see the sustainability of this recovery. While this strong bounce back by XRP is a great indicator, the market is always unpredictable, and traders will have to play with resistance levels and external economic factors with care. If the bullish momentum is sustained, XRP might be positioned for further gains, but one still has to be cautious in an ever-changing market landscape.