On-chain data shows that over $40 billion in XRP has been moved in the past week, putting this altcoin at risk of a strong sell-off. Specifically, these coins have been transferred to exchanges, indicating that XRP is at risk of a massive liquidation.

Over $40 billion in XRP has been transferred to exchanges.

Data from CryptoQuant shows that over $40 billion has been transferred to Binance in the past week, with the exchange's reserves spiking during this period. This development is often viewed negatively as it indicates investors are looking to sell off XRP. This occurs as the price of XRP surged to $2.60, explaining this wave of profit-taking.

Furthermore, cryptocurrency analyst Ali Martinez reveals that Bitcoin "whales" have taken profits, selling over 30,000 BTC this week. Therefore, XRP "whales" may simply be reflecting this move. Meanwhile, Bitcoinist reports that XRP is hitting oversold levels as net cash flow turns negative, with an increasing wave of sell-offs.

This selling pressure comes amidst Judge Analisa Torres's ruling in the Ripple vs SEC case, causing a setback for XRP. The judge dismissed the parties' request for a guiding ruling due to procedural filing issues. This ruling also triggered a major sell-off, with XRP's price dropping over 4%.

XRP is at risk of losing upward momentum as Martinez reveals a key support level at $2.38, meaning a drop below this level could lead to a deeper correction. However, holding above this level could help this altcoin rise to new highs, as this analyst noted that there are no major resistance clusters ahead. Cryptocurrency analyst CasiTrades has warned that if XRP cannot hold above the resistance level of $2.69, it could push the price down to $2.30 and reset.

The altcoin has formed a double bottom pattern.

In a post on X, cryptocurrency analyst Egrag Crypto reveals that XRP has formed a double bottom after dropping to $2.3126. He noted that this altcoin is still bouncing from the red downtrend line, indicating a potential recovery. The analyst added that this altcoin is experiencing some minor fluctuations within the Fibonacci range between $2.30 at 0.888 and $2.62.

The accompanying chart shows that the key lies in XRP maintaining above the $2.30 trendline. A bounce from this level could propel this altcoin up to $3.80, near the current all-time high (ATH) of $3.84. Based on historical performance, Egrag Crypto still expects the price of this altcoin to rise from $27 to $33 in this market cycle.