Large Holders Liquidate XRP Holdings Amid Widespread Market Correction Wave

XRP continues to face mounting headwinds as market participants move to distribute holdings at accelerating rates. On-chain metrics reveal that major stakeholders have liquidated approximately 470 million XRP tokens within a 10-day window, signaling intense selling pressure that has reshaped investor sentiment across the ecosystem.

The token’s downward trajectory has been significant, with XRP retreating 17% over the past month to trade near $1.85 as of late December 2025, slipping below critical support thresholds. The recent decline has pushed the asset below its 20-day exponential moving average and further weakened the technical foundation that previously supported the price.

Distribution Activity Mirrors Profit Realization Cycles

Chain analytics platform data illustrates a striking pattern of profit-taking among longer-term market participants. On July 24, holders who accumulated positions over extended periods realized $375 million in gains—a significant distribution event comparable to patterns observed during the December 2024 appreciation cycle.

This behavior extends across the broader cryptocurrency market. Bitcoin holders executed over $1.5 billion in profit exits on July 18, marking the largest realization event since late 2024. Ethereum investors completed $575 million in distribution on August 16, while Solana participants liquidated $105 million in holdings. TRON recorded a historic $230 million profit-taking spike on August 6, reflecting synchronized distribution activity among sophisticated market operators.

These synchronized liquidation events suggest that institutional and experienced traders are systematically exiting positions as valuations extend, a common pattern when market rallies begin to mature.

Regulatory Uncertainty Continues to Shadow Price Action

The SEC’s decision regarding the proposed XRP ETF product has encountered another postponement, with the review deadline extended to October 23 from the originally scheduled August 24 determination. The approval of such an instrument would represent a transformative moment for the asset class, enabling institutional capital flows through regulated frameworks.

Current regulatory ambiguity adds another layer of complexity to near-term price dynamics, as market participants weigh the potential upside against ongoing uncertainty.

Technical Structure Points to Consolidation with Volatile Breakout Risk

XRP’s daily price action has formed a symmetrical triangle pattern, with converging resistance and support lines establishing a narrowing trading zone. The token’s repeated rejection from upper volatility bands confirms that selling interest remains dominant within this formation.

Critical support levels include $2.50 and $2.78, with the upper Bollinger Band and the 20-day moving average near $3.09 representing intermediate resistance. The Relative Strength Index sits at 42.9, positioned between neutral and oversold conditions, while the Choppiness Index at 58 suggests volatility expansion is possible in either direction.

A breakdown through key support could extend losses further, while a sustained breakout above resistance would be required to restore bullish momentum to the daily timeframe.