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Point of Focus
- XRP fell as a stronger USD, high Treasury yields, and liquidations pressured the market.
- Whale-sized orders and large outflows suggest holders are quietly accumulating XRP.
- XRP must hold the $1.00-$1.01 support zone to avoid a potential decline toward $0.90.
XRP (XRP) fell by 2.5% to $1.0433 on Aug. 6, extending its seven-day decline to 3.9% as macroeconomic pressure, profit-taking, and leveraged liquidations weighed on the token.
Yet beneath the weak headline performance, onchain activity suggests large holders are absorbing supply, a divergence that may indicate XRP is entering the final phase of its market downturn.
Macro pressure triggers XRP selloff
The immediate decline reflects a stronger US dollar and rising long-term Treasury yields, both of which have reduced demand for high-risk assets. Hawkish signals from the US Federal Reserve have encouraged investors to adopt a more defensive posture, leaving altcoins particularly exposed.
XRP also suffered from a wave of long liquidations after breaking below established technical support.
An elevated open-interest-to-market-cap ratio had left the derivatives market overextended, allowing relatively modest selling pressure to trigger forced position closures and amplify the decline.
Technical indicators remain weak. XRP’s moving average convergence/divergence (MACD) is flashing a sell signal, while its relative strength index (RSI) of 38.9 shows fading momentum. However, an oversold Williams %R reading suggests the sell-off may be approaching exhaustion.
Whales absorb selling pressure
Despite short-term weakness, CryptoQuant data points to continued accumulation by large XRP holders. Spot orders remain at “large whale” levels, while cumulative volume delta has moved toward neutral territory. This indicates whales are using limit orders to absorb available supply without aggressively bidding the price higher.
Binance data reinforces the trend. Wallets transferring more than 1 million XRP reportedly account for 55.3% of daily XRP outflows, while the exchange’s XRP supply ratio has fallen to 0.03.
Moving tokens away from exchanges does not guarantee a rally, but it can reduce immediately available selling pressure.
This disconnect between price action and whale behavior is often associated with base formation. Stronger holders accumulate from weaker participants, while broader sentiment remains cautious.
XRP nears bottom, but risks remain
XRP is holding just above support around $1.01. A sustained recovery above $1.18 could create momentum toward $1.29 and possibly $1.50. Conversely, losing the psychologically important $1 level could expose the token to a decline toward $0.90.
Several structural headwinds remain, including regulatory uncertainty, expanding circulating supply, and institutional capital favoring Bitcoin (BTC) and Ether (ETH).
#XRP 3-Day Analysis – Wave 3 Setup Is Developing:
🟣The chart is showing a potentially important bullish divergence:
▫️Price is forming a lower low
▫️RSI is forming a higher low🟣That suggests downside momentum is weakening, even while price remains under pressure.
🟣From an… pic.twitter.com/2qSWTfPzDD
— EGRAG CRYPTO (@egragcrypto) August 5, 2026
Ripple’s growing reliance on its RLUSD stablecoin also complicates assumptions that the company’s expansion will automatically translate into XRP demand.
Whale accumulation, therefore, supports the case that a bottom is forming, not that it has been confirmed. XRP may be moving from forced selling into consolidation, but a durable reversal will require stronger spot demand, improving macroeconomic conditions, and a decisive break above resistance.
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