XRP has slid to near $1.26, its key support level, heightening concern about further declines.

The Crypto Basic, a blockchain media outlet, reported on Oct. 26 that the number of wallets holding large amounts of XRP has fallen while exchange holdings have increased. It said $1.11 and $0.98 are being mentioned as the next support areas if XRP breaks below $1.26.

Santiment, an on-chain analytics firm, said the number of wallets holding 10 million to 100 million XRP fell to 339 from 351 in recent weeks. It is difficult to interpret this immediately as selling by large holders. Holdings may have dropped below 10 million or exceeded 100 million and been excluded from the tally, and balances may have been spread across multiple addresses or moved to other wallets.

Exchange XRP holdings rose by about 47 million tokens to about 11.05 billion from about 11.03 billion. At current prices, the increase is worth about $60 million.

Balances have fluctuated but remain near the top of the recent trading range. A rise in exchange balances is typically seen as selling pressure because it increases the amount available for sale.

In price terms, whether XRP holds $1.26 is important. If that support breaks, $1.11 is presented as the first lower support zone. If weakness continues, a drop to $0.98 is also being discussed. The fall from $1.26 to $0.98 is about 22.2 percent, and from $1.28 it is about 23.4 percent.

If XRP holds $1.26, the additional downside scenario is not confirmed. The $0.98 level is a technical scenario that assumes a break of support, and it is not a price that can be expected to be reached based only on the decline in large wallets.

The upper resistance levels cited were $1.34, $1.43, $1.52 and $1.62. In the near term, key variables for the next direction will be whether changes in large wallets and exchange balances continue, and whether the $1.26 support holds alongside them.