XRP Shows Early Reversal Signals as Oversold Conditions Deepen Following Major Whale Sell-Off

XRP is showing early signs of a technical rebound after an intense wave of institutional selling pushed the asset into deeply oversold territory. Over the past 48 hours, whale wallets unloaded nearly 200 million XRP—worth roughly $400 million—creating sharp supply pressure and triggering a decisive breakdown below the key $1.96 zone. The sell-off aligned with a broader market risk-off move as Bitcoin slipped under $90,000, amplifying volatility across major altcoins.

Despite the heavy distribution, institutional interest hasn’t disappeared. Bitwise’s new XRP ETF recorded an impressive $25.7 million in first-day volume and surpassed $100 million in assets under management, signaling that large investors continue to accumulate exposure even amid short-term weakness. Still, overall sentiment remains fragile as total crypto market capitalization struggles under persistent outflows.

XRP’s price action reflected this tension. The token slid from $1.96 to $1.91, marking its weakest close in three sessions, while trading volume surged 67% above average to 182.1 million—confirming aggressive sell pressure. A clear descending channel shaped the day’s structure, with intraday volatility reaching over 5%. The decline accelerated into a capitulation low at $1.895 before a modest 0.5% rebound formed late in the session. A standout bullish signal came from a final-hour volume spike to 2.76 million, breaking the multi-hour pattern of fading participation and hinting at early accumulation.

Technical indicators further support the possibility of a near-term bounce. RSI and short-term stochastic levels dipped deep into oversold territory, forming the first bullish divergence since last week’s breakdown. However, XRP’s chart remains vulnerable. Bulls must reclaim $1.96 to break the descending channel and restore positive momentum. Losing support at $1.90 would likely accelerate downside targets toward $1.82 and $1.73.

Traders should monitor ETF inflows, Bitcoin’s volatility, and whether XRP can maintain strength at the critical $1.90 level—all of which will shape the asset’s next major move.