XRP suddenly lost 6% in trading on Tuesday, as large investors reduced positions to lock in profits at high levels. Notably, this action took place just hours before Fed Chair Jerome Powell's important speech at the Jackson Hole conference.

XRP Whales have sold 460 million tokens, waiting for signals from Powell

XRP continued to decline on Wednesday, losing an additional 6% as investors remained cautious ahead of Fed Chair Jerome Powell's speech on Friday. In just 6 days, this cryptocurrency has lost a total of 13%.

Notably, the wallet group holding between 10 to 100 million XRP sold about 460 million network tokens in one week. In contrast, 'small whales' holding between 1 to 10 million XRP took the opportunity to accumulate an additional 130 million tokens. This trend reflects a divide in expectations among large investors. History has shown that the price of XRP often follows the footsteps of major 'whales'.

Nevertheless, the majority of investors are still in a 'profit-locking' state. Over 93% of circulating XRP is currently profitable compared to the purchase price from mid-July, with the average profit rate remaining above 90%. In fact, since the strong breakthrough in November last year - after President Trump's election victory - profits for XRP investors have never dropped below 80%.

Part of this upward momentum also comes from Ripple officially ending its long-standing legal dispute with the U.S. Securities and Exchange Commission (SEC), along with active legal support from the Trump administration.

However, as favorable legal factors have already reflected in the price and investor profits have been maintained at high levels for too long, the market risks witnessing a strong profit-locking wave if a price shock occurs. At this point, all eyes are on Powell's speech at Jackson Hole, which could become the decisive factor in how the 'big profit' investor group will act in the following sessions.

XRP Falls Below 50-Day SMA, Heading Towards Support Zone $2.78

In the past 24 hours, XRP has continuously breached several key support levels, including the lower edge of the symmetrical triangle, the $2.95 threshold, and the 50-day moving average (SMA).

If it cannot quickly recover the 50 SMA, this coin could slide back towards the support area near $2.78. In a worse scenario, the $2.6 mark is seen as the 'last cushion' to limit the decline.

Technical indicators are currently leaning towards a bearish trend. The RSI has fallen below neutral territory, indicating that bears are in control. Meanwhile, the Stochastic Oscillator has entered the oversold zone, reflecting strong selling pressure, while also suggesting a potential technical rebound in the short term.

Register for a Binance account to receive permanent trading fee refunds:

- New account registration link: https://accounts.binance.com/register?ref=Q2FSX523

- Referral code: Q2FSX523