XRP Price Nears $2 Breakdown, Whales Buy $1B Dip: What to Expect?

Ripple’s XRP price is struggling, dropping to $2.04 on Feb. 28, 2025, after losing 4% in a day, according to CoinMarketCap.

Over the past week, it has plunged 9% as the entire crypto market takes a hit—Bitcoin is now below $80,000, and altcoins are deep in the red. Despite the sell-off, whales have been quietly accumulating, scooping up massive amounts of XRP since Monday’s crash.

Whales Pounce as Short-Term Holders Dump XRP

As XRP struggled near $2.12, whale wallets holding 1M-100M XRP have quietly increased their holdings, absorbing the recent selling pressure from short-term traders. The Spent Coins Age Band metric shows that holders from 1D-7D and 90D-180D cohorts spearheaded the recent sell-off, either cutting losses or taking profits before further declines.

Data from Santiment confirms that XRP whales have been capitalizing on the crash, scooping up massive amounts of tokens since Monday.

XRP Price Risks Falling Below $2

XRP has already confirmed a daily candle close below the $2.25-$2.30 support zone, a level that previously triggered strong bounces. According to Crypto World analyst Josh, the next major support lies between $1.95 and $2.00.

A sustained breakdown below these levels could push the token toward $1.6, where high-time-frame (HTF) demand may emerge.

Crypto trader CredibleCrypto has also adjusted his stance, revealing that he closed all his hedge shorts on XRP. He stated that while XRP/BTC and XRP/ETH pairings are holding better than expected, he is no longer interested in shorting at these levels.

“If we do take the range lows just under $1.80, I’ll look for potential longs into HTF demand at $1.60, but not interested in being short at these levels anymore.”

The XRP/USD weekly chart tells the tale. A blue trendline from October 2024 propped up the climb, but XRP’s drop past $2.3065-$2.4275 (Fib 0.618-0.382) screams trouble.

Support at $1.618 beckons, matching Josh’s $1.95-$2.00 pivot (L1). Below, $1.7938 flashes red, with $1.60 as a potential floor—or a trap.

Macroeconomic and Market Factors Pile on the Pain

This week, the broader crypto market has lost nearly $560 billion in valuation, dragging Bitcoin below $79K and eroding gains across top altcoins. The ongoing trade and tariff wars between the U.S. and China have further dampened sentiment, triggering record outflows from Bitcoin ETFs.

BlackRock’s Bitcoin ETF alone saw $11 billion in outflows on Tuesday, forcing the asset manager to sell record amounts of BTC. XRP and other digital assets face increased downward pressure as risk appetite weakens across global markets.

Can XRP Recover, or Is More Pain Ahead?

Market experts remain divided on whether XRP price can reclaim bullish momentum.

Analyst Rose Premium Signals suggests that $1.2578 could act as a strong support zone if XRP fails to hold $2. However, a successful defense of the $2 mark could reignite a push toward $3 and beyond.

Meanwhile, another analyst, CasiTrades, remains optimistic that the correction may bottom out soon, setting the stage for a potential XRP rally in the coming weeks.

Despite the current bearish sentiment, whales continue to bet on a recovery, making the next few days crucial for XRP’s trajectory.

With whale accumulation increasing and technical indicators flashing warning signs, traders will closely watch XRP price ability to hold above $2.

If bulls fail to defend this level, a sharper correction to $1.60 or lower could be in play. However, should buying pressure intensify, a rebound toward $2.50-$3 might not be far off.