The XRP token is facing potential correction signals despite recent bullish momentum. Key insights from CryptoQuant’s analysis of exchange inflows suggest cautious sentiment among major players, a pattern observed in past market peaks. A surge in large-scale XRP transfers to exchanges has been detected, particularly from whales, hinting at an unwinding of holdings. On-chain data by PelinayPA indicates this trend aligns with historical precedents, suggesting a potential short-term correction towards the $2.8-$3 support level. This is further supported by a decline in overall trading volume and open interest on the derivatives market. Despite this, retail sentiment remains optimistic due to continued long positions. However, the SEC’s ongoing delay on XRP ETF applications adds another layer of uncertainty. On-chain analysis from Ali Martinez suggests a near $3.70 price target for the future. A key point is how the $3 level holds; its break could amplify the correction, while holding opens doors to potential rally.