XRP Faces Selling Pressure as Two Key Metrics Flash Warnings

XRP is currently in a defensive position after a volatile few days. The price recently climbed to a peak of $1.70 before a sharp reversal saw it slide below support levels at $1.60 and $1.40. Investors are now watching the charts closely to see if the token can hold its current footing or if further downside is likely.

Two major factors are driving this uncertainty. First, whale activity has shifted from aggressive accumulation to profit taking. Data shows large holders have offloaded or redistributed around 90 million XRP over the past week. This selling pressure often influences smaller retail traders to follow suit. Second, network participation has plummeted, with daily active addresses falling by over 90 percent from the recent rally peak.

Despite these warning signs, some analysts remain hopeful about a future turnaround. The price is currently testing a critical support zone near $1.35. If the token holds this level, a rebound toward $1.60 remains a possibility. Some market observers are even looking at technical patterns that suggest a significant long term move if XRP can successfully reclaim its 50 day moving average.