The market absorbed a $130 million XRP sale as price slid 4.7% and $105 million in long positions were wiped out under heavy regulatory scrutiny. A second wave following the VERT tokenization news in Brazil pushed the decline to 12.22%, while intraday swings expanded as leveraged bets closed at a loss.
Order books were reshaped as liquidations accelerated and volatility rose for XRP. Across the wider crypto market, more than $640 million in leveraged positions vanished, spreading selling pressure to adjacent tokens.
Large addresses offloaded 440 million tokens, cutting their combined balance to the lowest level in 34 months and pulling more than $300 million out of circulation. The exit aligned with Ripple’s monthly release of one billion XRP from escrow, an event traders track for its direct addition to supply.
Market impact and supply dynamics
Price met repeated rejection between $2.90 and $3.00, retreated to $2.85–$2.86 and now rests above the last defended floor at $2.70. Analyst Peter Brandt notes that a break of this level would extend the drop. Support sits at $2.70 and $2.66; a daily close beneath those numbers opens the path to lower ranges.
The chart shows a falling wedge with fading sell volume, a setup that often resolves upward. Dataset presents conflicting forces: additional supply from escrow and the recent dump raise the chance of deeper losses if buyers stay absent, yet the wedge and other reversal shapes leave room for a rebound.
The wedge breakout projects a move toward $3.55, while a double bottom or inverse head-and-shoulders would aim for $3.70–$4.00. Whale inflows turned positive in early May for the first time since November 2024, a shift that has preceded prior rallies.
Momentum now hinges on key supports, pattern confirmation and supply flows. The next directional leg will be shaped by these catalysts and whether buyers can defend $2.70–$2.66 or force a breakout toward the projected targets.
