Bitcoin’s extended correction rippled through broader crypto markets on Friday, pushing XRP below the $2 mark after an old wallet triggered a significant sell-off that injected fresh downward pressure on the token’s price.
Data on the blockchain shows that a wallet dating to 2017 moved and sold a large amount of XRP, representing roughly $721 million worth of tokens at market prices. The selling coincided with a broader risk-off market mood, intensifying selling pressure and dragging prices lower across key digital assets.
Massive Sell-Off From an Old Wallet
Blockchain on-chain monitoring platforms identified a wallet that had been dormant for years suddenly becoming active. The address offloaded a sizable tranche of XRP into the market, contributing to a sudden increase in supply hitting exchanges.
Traders and analysts flagged the move as a typical “whale sell-off,” where a single large holder can meaningfully sway price action particularly in markets with stretched sentiment and thin order books.
While the age of the wallet suggested it was not an operational trading account, the timing amplified the sell-off impact, adding to the downward pressure on XRP’s short-term technicals.
Market Impact: XRP Breaks Support
The sell-off catalyzed a break below the psychological $2 support level, a key threshold that traders have been watching over the past several sessions. Once breached, selling pressure accelerated as short-term holders capitulated and stop losses were triggered.
In broader context, XRP’s move lower came alongside weakness in other major crypto assets on heightened risk aversion, with Bitcoin and Ethereum also exhibiting volatility.
Market sentiment gauges noted an uptick in “fear” readings, and liquidity metrics showed rising withdrawal interest among retail traders over the past 24 hours.
Expert Insights
Strategists highlight that whale activity especially from dormant wallets can disproportionately impact altcoins like XRP when market confidence is already fragile. Large on-chain movements often prompt automated selling by algos tracking sudden supply inflows to exchanges.
On a technical basis, analysts point out that the break below $2 may mark a shift in near-term structure, potentially exposing lower support bands if selling pressure persists. Traders generally look to prior demand zones well below current prices for intermediate support levels in such scenarios.
However, long-term investors emphasize that single events rarely define broader trends suggesting that a sustainable rebound often requires stabilizing macro conditions and renewed institutional interest.
Conclusion
The sudden dump from a long-inert XRP wallet totaling approximately $721 million has added fuel to selling pressures that knocked XRP below the $2 level. While the broader crypto market remains sensitive to macro catalysts and whale dynamics, the episode underscores the importance of supply flows and sentiment in driving short-term price action.
As always, traders and holders should monitor on-chain activity, support zones, and broader risk appetite for clues about when the next phase of price discovery may emerge.
