XRP Holds $1.35 Support as $6 Billion Whale Selling and Bitcoin Correlation Weigh

XRP (XRP) remained under pressure on Thursday UTC, trading in a narrow $1.35 to $1.40 band as the token struggled to regain momentum after a recent pullback. The price is now roughly 15% below a near-term peak around $1.60, with traders pointing to tight 'Bitcoin correlation', heavy 'whale distribution', and a broader reduction in leverage across crypto derivatives markets as key drags.

As of March 27 UTC, XRP’s price action has closely tracked Bitcoin (BTC), with market data indicating a correlation of roughly 0.80. While BTC has held a wide consolidation zone between $65,000 and $75,000, XRP has largely remained range-bound—suggesting that macro risk appetite and directional cues from BTC continue to dominate XRP’s short-term tape.

At the same time, supply dynamics have added friction to any attempted rebound. Around $6 billion worth of XRP has reportedly been released into the market by major holders, contributing to layered overhead resistance. Analysts cited $1.44, $1.58, and $1.76 as key levels where sell pressure has intensified, reinforcing a ceiling that has repeatedly capped rallies. Relative to an early-year high near $3.65, XRP is still down about 43%, underscoring how quickly liquidity conditions have tightened since the prior peak.

Derivatives positioning is also drawing attention. Open interest in XRP-linked products has risen since early March and is estimated around $946 million, signaling that speculative interest remains elevated despite the spot market’s lethargy. Binance has been highlighted as a key venue for the build-up, with open interest there rising roughly 14.8% over the period referenced by market trackers.

Notably, an estimated $314 million in short positions is concentrated between $1.375 and $1.405, a clustering that could act as fuel for abrupt moves if price pushes into liquidation territory. Negative funding rates—typically interpreted as traders paying to maintain short exposure—support the view that market bias has leaned defensive. In such setups, a rapid move higher can trigger a 'short squeeze', though sustained follow-through generally requires spot demand and improving risk sentiment rather than leverage alone.

Beyond price and positioning, Ripple has continued to push ecosystem and institutional narratives. The company recently introduced an AI-based security tool designed to strengthen the resilience of the XRP Ledger by identifying code vulnerabilities earlier and improving overall system reliability. Ripple is also expanding its footprint in Asia, joining the Monetary Authority of Singapore’s BLOOM initiative and establishing a partnership with Unlock, movements that signal a continued focus on the Asia-Pacific region as regulatory and enterprise adoption trends develop.

Regulatory catalysts could add another layer of volatility in the days ahead. A U.S. Securities and Exchange Commission decision deadline tied to the agency’s review of proposed XRP-related ETF filings is approaching, according to market watchers. Approval could bolster expectations of 'institutional inflows', while a delay or denial would likely amplify near-term uncertainty and trigger faster two-way moves—particularly given the concentration of leveraged positioning in a tight price corridor.

For now, XRP is holding above the $1.35 area, a level traders are treating as immediate support. Whether the token breaks down further or stages a relief bounce may hinge on Bitcoin’s next directional push, the persistence of large-holder selling, and how quickly derivatives leverage unwinds—or re-accelerates—into the SEC decision window.