Ripple ($XRP) shows shaky on-chain signals despite short-term rebound; watch for breakout of $3.20.

XRP has risen by nearly 5% in the past 24 hours after a weekend plunge. However, on-chain data suggests that more time is needed for market sentiment to recover. Experts note that while XRP is trading above an important price support level, large sell-offs by whale investors and technical weakness signals continue to pose downward risks. Currently, XRP is trading around $3. Over the past 7 days, it has dropped by over 9% and remains 18% below its all-time high of $3.65 recorded on July 18th. At that time, trading volume exceeded $110 million, driving the upward trend, but profit-taking emerged when it surpassed $3.03. Blockchain analyst Ali Martinez highlighted key support levels based on XRP's historical accumulation. Approximately 1.8 billion XRP were purchased around $2.80, which could serve as a short-term support. However, Martinez emphasized that the true support level is $2.48, with the interval potentially experiencing thin buying pressure. Technical indicators also suggest a challenging situation. XRP's Market Value to Realized Value (MVRV) indicator recently recorded a death cross, indicating potential further adjustment. This suggests many holders are in unrealized loss, which could increase selling pressure. Market analyst CRYPTOWZRD noted XRP is forming a positive daily trend. He identified key resistance levels at $3.30 and the previous high of $3.65, with support levels at $2.80 and $2.83 on an intraday basis. Breaking $3.20 could be a crucial turning point for additional gains. Whale investors' massive sell-offs are also a market burden. After July's peak, whales sold over 700 million XRP in a single day, equivalent to approximately $2.1 billion. Such large-scale selling could intensify short-term downward pressure and potentially stimulate selling sentiment among retail investors. Meanwhile, XRP is experiencing leveraged position liquidations with short position clearances. Crypto analyst CW predicted potential significant short position liquidations if XRP reaches $3.06, anticipating increased short-term volatility. While XRP's current rebound is technically significant, on-chain indicators and selling pressure suggest continued caution. XRP's medium-term trend will likely be determined by its ability to maintain key support levels and demonstrate technical breakthrough capabilities.