XRP has experienced a steep correction just days after reaching its highest daily and weekly closing prices above $3.45. The cryptocurrency fell by nearly 10% over the past few sessions, marking its largest daily loss since April. On Wednesday alone, XRP plunged 10.33%, raising concerns among short-term traders and futures market participants. This drop also had a noticeable effect on futures open interest. According to CoinGlass , XRP futures open interest dropped from $10.94 billion to $9.10 billion—a 16.8% decrease. This suggests that leveraged traders may be rapidly exiting positions or being liquidated, reducing speculative confidence in the short term. Third-Largest Long Liquidation in 2025 Hits Binance XRP’s decline appears to be driven by a combination of whale movements and long liquidation pressure. Crypto analyst Darkfost pointed out that a wallet linked to Ripple co-founder Chris Larsen recently transferred significant amounts of XRP. More than 50 million XRP tokens have moved, with roughly $140 million reportedly sent to exchanges. Of these, 42 million XRP were transferred on Thursday alone, following 84 million moved the previous Friday. This cascade of activity contributed to Binance recording the third-largest long liquidation event for XRP in 2025. Approximately $86 million in long positions were wiped out within hours as a result. Despite this, Cointelegraph has noted continued whale accumulation. Currently, 2,743 wallets each hold over one million XRP, totaling 47.32 billion tokens. This accounts for 4.4% of the circulating supply. Whale Flows Signal Caution The sentiment among large holders may be changing. Data from CryptoQuant indicates that the 90-day average for whale flow has turned negative. This is significant, as the metric flipped positive in early May—preceding XRP’s strong rally. The current reversal may indicate that whales are reducing their holdings, potentially signaling a local price peak. Key Levels in Focus as Market Awaits Direction Even with recent volatility, XRP’s higher time frame structure remains bullish. Last week’s multimonth high reconfirmed an upward trend, although the recent drop brought prices near critical support. On the four-hour chart, the $3.00 mark stands out as psychological support. Thursday’s decline swept liquidity near $2.95, establishing it as an immediate area of interest. A move above $3.25 would suggest a bullish shift in market structure on lower time frames. This would likely establish $2.95 as a local bottom. However, sustained selling could push the price into the $2.66–$2.86 range. The $2.64 zone, previously a strong resistance level in Q2, now serves as major support. XRP bulls are likely to maintain control unless price closes below both $3.00 and $2.64, which would suggest a possible trend reversal and further downside risk.