XRP continues to attract attention in the cryptocurrency market as the price rises sharply, but the activity of whales and capital inflow to exchanges raises concerns among investors about the potential for short-term price corrections.
XRP's price just achieved a 20% increase in the past week, while both technical indicators and on-chain data show mixed signals about the upcoming price increase of this cryptocurrency.
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Whales transferred 108 million USD worth of XRP to Coinbase, but trading volume decreased, causing investors to be cautious about the potential for profit-taking.
Technical patterns such as flag & pole and inverted head and shoulders are emerging, targeting a price increase to 3.80 USD, although Bollinger Bands and RSI warn of short-term fluctuations.
Large liquidation clusters around 3.13 USD – 3.33 USD, with long positions significantly exceeding short positions, indicate that buyers still hold the advantage.
What caused XRP's significant price increase last week?
In the past week, XRP's price recorded an increase of 20%, surpassing many Altcoins and continuing to attract attention from the cryptocurrency community and professional investors.
"XRP's recovery stems from both technical factors surpassing resistance and the buying actions of some institutional investors."
Excerpt from the AMBCrypto market analysis report, August 2025.
Other factors such as capital inflows into the market, positive legal news in the United States, and momentum from institutional investors are also considered reasons driving the recent uptrend. On CoinMarketCap, XRP reached 3.25 USD in the latest session, up 2.5% in 24 hours.
Whales transfer large amounts of XRP to exchanges: A concerning move?
In just 24 hours, Whale Alert data recorded two large transactions totaling 33.396 million XRP (equivalent to 108 million USD) transferred to Coinbase. This is often a sign of potential profit-taking by long-term holders.
"A strong inflow of money into centralized exchanges usually implies that short-term selling pressure may increase when large holders realize profits."
CryptoQuant data report on August 11, 2025.
Historically, when whales simultaneously transfer tokens to exchanges, the likelihood of increased selling pressure and causing strong short-term price fluctuations is well-founded. This situation may lead to a correction before returning to a sustainable uptrend.
What fluctuations are there in XRP trading volume?
While the price climbs impressively, XRP's trading volume has decreased by 15% compared to the previous session. Analysts warn that this is a sign that retail investors are becoming more cautious.
"The decrease in volume when prices are near ATH often signals the possibility of a technical correction due to a lack of new capital inflow into the market."
CoinGlass cryptocurrency market technical report, August 2025.
Market strategists believe that when trading volumes weaken, the FOMO effect may cool down, creating favorable conditions for large holders to manipulate and control prices in the short term.
What do XRP's technical analysis patterns signal?
On the daily and 4H frames, many positive technical patterns are emerging with a breakout from the downward trendline, surpassing the bullish flag pattern as well as forming an unconfirmed inverted head and shoulders pattern.
After successfully breaking through the flag & pole pattern, XRP is expected to rise another 15% to the target price of 3.80 USD. This momentum is supported by a strong engulfing candle from the past week.
What do Bollinger Bands and RSI warn for XRP investors?
Bollinger Bands indicate that XRP's price is fluctuating near the upper band, establishing a strong growth state but also showing the risk of technical correction if selling pressure surges. RSI at 59 signals that buyers still have room for short-term increases.
Experts warn that the market may witness a slight shakeout to cool down before consolidating the recovery momentum if trading volume increases again soon or new capital flows into the market.
What influence does a liquidation cluster have on trading positions?
Currently, the key liquidation price levels are identified at 3.134 USD (below) and 3.334 USD (above). At these levels, the total value of long positions is 170.01 million USD, compared to 24.85 million USD in short positions.
"The dominance of buying positions (Long) in key liquidation clusters is a driving factor for the uptrend, but it also carries risks if the market suddenly reverses."
CoinGlass report, August 11, 2025
In fact, when the speculative trend leans heavily towards long with a dominant ratio, any strong price fluctuations leave a chain liquidation consequence, forcing traders to quickly consider risk management.
Comparing the current situation of XRP with major bull markets in the past
Compared to the bull runs in 2021 or late 2017, the inflow of money into exchanges currently occurs simultaneously with strict capital control by large investors. In addition, the circulating supply in the market is lower as many investors hold coins in long-term cold wallets.
Indicators Bull Market 2017 Bull Market 2021 Bull Market 2025 Average volume 50 million USD/day 180 million USD/day ~220 million USD/day Amount transferred to exchanges Moderate increase Spike Strong increase at the end of the wave Highest weekly price increase 30% 22% 20%
The data shows that fluctuations in capital flows, volume, and Hold/Taking profit sentiment have similarities with previous breakout moments. However, macro factors and the shift of institutional capital into the DeFi market in 2025 also contribute to regulating this uptrend.
Will the buyers continue to control the XRP market?
Currently, large-scale buying positions, whale activity, and confirmed technical patterns provide a foundation for the uptrend. However, the risk of a short-term reversal still exists if capital continues to shift strongly to the exchanges.
Investors need to rely on technical indicators such as Bollinger, RSI, trading volume, and on-chain data to choose a flexible risk management strategy in a highly volatile market.
"Liquidity data and centralized trading patterns help traders forecast risk zones, but it is crucial to always proactively control positions before major fluctuations."
Eric Balchunas, Senior ETF Analyst at Bloomberg, 2024. (Source: Bloomberg Intelligence)
Psychological impact from XRP transfers to exchanges
From a psychological perspective, the transfer of large amounts of XRP to exchanges by whales often increases feelings of instability and prompts aggressive profit-taking from sellers, creating unpredictable short-term correction waves.
In addition, reports from CryptoQuant and CoinGlass show that spikes in capital inflow to exchanges often accompany strong price fluctuations and 'liquidation hunting' events in the derivatives market.
The overall picture: What is the upcoming XRP price trend?
With technical analysis signals still leaning towards bullish, decreasing trading volume and increasing capital inflows to exchanges are the main risks ahead. If XRP holds above the 3.25 USD mark and breaks strongly to 3.34 USD, the target of 3.80 USD is feasible, especially if trading volume recovers and new capital continues to flow into the market.
"The cryptocurrency market is always unpredictably volatile, traders need to use flexible combined analyses to minimize risks and maximize profits."
Caitlin Long, CEO of Custodia Bank, 2024. (Source: Custodia Bank)
XRP's price in the near future will largely depend on the power dynamics between physical buyers and speculative positions in the derivatives market, especially around major liquidation clusters.
Frequently asked questions about XRP price trends and on-chain data
XRP has just surged strongly, is there a risk of correction?
Yes, when prices rise while large amounts of money flow to exchanges, the risk of short-term profit-taking and correction is always present, investors need to closely monitor volume and technical patterns.
If trading volume decreases, will XRP's price remain sustainable?
Weak volume when prices near ATH warns of risks, but if new capital flows in or the technical pattern confirms an uptrend, the upward momentum remains supported.
What is the current key liquidation price zone for XRP?
Major liquidation levels are concentrated around 3.134 USD (below) and 3.334 USD (above), traders need to pay attention as prices fluctuate around these levels.
Can XRP rise to 3.80 USD?
If the flag & pole and inverted head and shoulders patterns confirm, along with supporting capital flows, the target price of 3.80 USD is entirely feasible according to current technical analysis.
How to reduce risks when trading XRP?
Always use reasonable stop loss, assess technical indicators, control capital, and update on-chain data to timely adjust positions when the market fluctuates strongly.
What impact does transferring XRP to exchanges have on small investors?
This action often creates short-term selling pressure and significant price volatility, small investors should avoid FOMO, observe further to avoid falling into the pump & dump trap of whales.
Is the dominance of long positions over short positions sustainable?
When long positions dominate, strong upward momentum can be maintained, but the risk of liquidation or rapid correction exists if there is an unexpected reversal from whales or negative news factors.
Source: https://tintucbitcoin.com/xrp-tang-20-cho-breakout-380-usd/
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