XRP Price Rallies as Smart Money Absorbs Whale Selling Pressure

XRP is trading at $1.58 with a solid 24-hour gain of 12.04%, marking a notable recovery as mid-tier investors strategically absorb the supply being offloaded by major holders. Over the past month, large whales have liquidated approximately 400 million XRP tokens valued at roughly $800 million, a move that would typically intensify downward pressure on prices. However, the market dynamics tell a more nuanced story: smaller whales and mid-tier players have been actively absorbing this supply injection, effectively preventing a cascade of bearish momentum across the broader market.

Smart Money Stepping In to Absorb Pressure

The absorption of whale-scale selling by secondary market players represents a significant stabilizing force. According to NS3.AI’s on-chain data analysis, these mid-tier investors aren’t passive buyers—they’re strategically accumulating at current levels, signaling confidence in XRP’s medium-term prospects. Simultaneously, long-term holders continue their own accumulation patterns, refusing to capitulate despite the supply pressure. This two-pronged buying interest—from both smart money and hodlers—demonstrates underlying conviction that XRP remains undervalued at present price levels.

Technical Breakout: Breaking Free from Downward Wedge

From a technical perspective, XRP has recently escaped the downward wedge formation that previously constrained its price action. This breakout carries significant implications: the pattern suggests a potential upside target of 11.7% above current levels, pointing toward the $2.10 resistance zone. However, traders remain cautious—the cryptocurrency remains vulnerable to sharp pullbacks if it breaks below established support levels, making disciplined risk management essential during this volatile period.

The absorption dynamics and technical setup converge to paint an intriguing picture for XRP. If mid-tier players and long-term hodlers continue absorbing whale supply, the path toward higher resistance becomes increasingly viable.