XRP Faces Short-Term Correction Amid Whale Outflows and Resistance at $3.10

I see that XRP has been under growing selling pressure after reaching its all-time high near $3.60 in late July. The price briefly surpassed $3.10 but failed to sustain that level, which has raised concerns about a possible deeper correction amid the caution in broader crypto sentiment. The recent decline, although milder compared to previous corrections, is notable because it coincides with a pronounced shift in whale activity, indicating large holders are moving towards distribution rather than accumulation. According to recent data from CryptoQuant, the whale flow's 90-day moving average has turned negative, a pattern reminiscent of earlier in the year before a prolonged downtrend. Large wallet outflows suggest that big investors are reducing their exposure, possibly ahead of increased volatility or declining demand. This behavior often signals a potential shift in the market trend, especially if sustained by continued outflows, which could weaken XRP’s short-term price outlook. Despite the correction, XRP still maintains a long-term bullish trend, staying above key support levels like the 50-day SMA around $2.71 and the 100- and 200-day SMAs near $2.49 and $2.45 respectively. As long as the price remains above the $2.70–$2.80 zone, the overall bullish structure could persist. However, a breach below this support range might expose XRP to further downside, possibly retesting recent lows. The immediate resistance at $3.10 remains a critical hurdle for recovery. If bullish momentum can be regained and whales resume consistent accumulation—per the analyst’s suggestion of over +5 million XRP daily inflows—there's potential for reversal. Absent this, the market's weak position, coupled with declining volume and rising volatility, underscores a cautious trading stance. In conclusion, while XRP's long-term prospects still look positive, near-term technical and on-chain signals point towards caution. The negative whale outflows and resistance at $3.10 suggest traders should monitor support levels closely and wait for stronger accumulation signals before considering bullish entries.