New York, 1st April 2025 – The cryptocurrency market witnessed a significant shift

This article provides an in-depth analysis of the events that transpired on March 31st, exploring the impact on XRP's price, trading volumes

A large-scale liquidation of XRP (Ripple) by a whale on 31st March 2025 triggered significant volatility in the cryptocurrency market and raised concerns about the token’s future price trajectory. The transaction, executed at a price of $0.50 per XRP, involved the sale of 1 billion XRP, amounting to a total value of $500 million.

According to reports from WallStreetBulls on Twitter, the whale’s liquidation was executed within a single day, and it immediately had a dramatic impact on XRP’s price. Within an hour of the sale, XRP’s price plummeted by 7%, dropping from $0.50 to $0.465.

The swift decline in price and the increased trading volumes indicated heightened market dynamics. According to data from Binance and Coinbase, trading volumes for XRP surged by 300% compared to the average daily trading volume of the preceding week, culminating in 2.5 billion XRP traded across both platforms.

This massive liquidation, while not unprecedented, is the latest in a series of events that highlight the susceptibility of cryptocurrencies to sharp price swings caused by large holders’ actions.

According to on-chain data from Glassnode, the number of active XRP addresses rose by 15% on March 31st, reaching 450,000. Additionally, the average transaction size increased significantly, indicating that smaller holders may have rushed to sell their positions in response to the whale’s actions. These metrics underscore the panic and uncertainty that gripped the XRP market following the large liquidation.

Technical Analysis: Bearish Momentum Intensifies

Key technical indicators provide further insight into the market environment after the whale liquidation. The Relative Strength Index (RSI) for XRP fell dramatically from 65 to 45 within an hour of the transaction. This shift indicates a move from an overbought condition to a more neutral stance.

The RSI is a popular momentum oscillator, and such a drop suggests that market participants are re-evaluating their positions in light of the sell-off.

The Moving Average Convergence Divergence (MACD) also showed signs of bearish momentum. The MACD line crossed below the signal line, a classic bearish signal indicating that the current downtrend may persist in the near term.

Moreover, the Bollinger Bands widened, reflecting increased volatility. The upper band was positioned at $0.52, while the lower band stood at $0.45, suggesting that price fluctuations within this range could continue unless a significant breakout occurs.

These technical indicators point to a market environment that has turned increasingly bearish in the wake of the whale’s massive sale. Traders and analysts alike will be watching closely for signs of further weakness or if the market can stabilize and reverse the negative sentiment.

On-Chain Data: Surging Activity and Shifting Sentiment

On-chain data provides additional context to the current market sentiment surrounding XRP. According to Glassnode, the number of active XRP addresses rose by 15% on March 31st, signaling an uptick in user activity, albeit driven by panic selling in response to the whale’s actions.

Moreover, the average transaction size surged, indicating that smaller holders were likely attempting to offload their holdings as the price began to decline.

Santiment’s data also showed a notable increase in the number of transactions involving large amounts of XRP, suggesting that the whale’s sell-off triggered a chain reaction among other holders.

This surge in transactions, coupled with the rising number of active addresses, highlights the fact that XRP’s market sentiment has shifted toward a more cautious and risk-averse stance.

Interestingly, Glassnode also noted that XRP had entered a state of “denial” following the liquidation. This phase, according to historical patterns, typically precedes a further shift in market sentiment and often heralds additional losses.

This “denial” phase is characterized by a reluctance to accept the fully extent of market declines, with investors hoping for a recovery rather than preparing for the possibility of deeper losses.

According to statistics from the cryptocurrency exchange Binance, over the past 24 hours, the price of XRP experienced a downturn of 6.46%, settling at $0.464 by 07:18 (GMT+2).

In the past seven days, the token experienced a decline of 11.38%.

In January 2025, XRP reached a peak of $3.40, but since then, it has experienced a significant drop of over 40%.

According to technical analysis, if XRP breaks below the 50-week exponential moving average (EMA) at $1.58, the cryptocurrency could face an even deeper downturn.

Analysts at ifxSignals are particularly concerned about the possibility of XRP falling as low as $0.87, a drop of 60% from its current price.

Such a decline would mirror the substantial