Tuesday, January, 21, 2025

XRP Under Pressure as Whale Wallets Dump Millions: What’s Next for the Token?

XRP
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Anny Sam

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  • Whale flows for XRP have turned sharply negative.
  • Large holders show no signs of fresh accumulation.
  • Structural weakness may persist without strong buying activity.

XRP is showing signs of renewed selling pressure from its largest investors. Blockchain data confirms that the 90-day moving average of whale flows has turned deeply negative. This change means that large wallets are now moving significant amounts of XRP out, rather than accumulating.

This movement exactly resembles a prior pattern observed previously this year. In January and February, this kind of steady whale exodus pattern emerged before XRP registered a local maximum price. The prolonged selling previously ended with a market value correction. The correction was further, but longer, but this current alert brings exactly the same worries.

Source: CryptoQuant.com

Even though the scale of the recent drawdown is smaller, the pattern points in the same direction. Without a meaningful reversal in whale behavior, XRP could continue to lose strength in the short term. On-chain analysts suggest that a sustained inflow of over five million XRP per day from large holders is needed to restore a bullish outlook.

XRP Lacks Whale Support Amid Market Uncertainty

At this point, nothing suggests major holders are coming back to buy XRP. Lack of faith among whales will matter significantly in the market. Major investors tend to act like trend leaders, with their decisions potentially propelling a bounce or continuing a decline.

For the moment, XRP cannot get its footing. In the absence of clear support from large-value wallets, retracement becomes challenging. Traders usually consider whale behavior an effective indicator of sentiment. For the moment, sentiment remains cautious.

The persistent lack of accumulation could see dwindling momentum among smaller investors, who might lack sufficient momentum among themselves to drive prices upwards. Any potential bounce, therefore, could be restricted and short-lived, unless flows among whales go into positive territory.

Ethereum Whales Accumulate as XRP Faces Pressure

While XRP has been under pressure during the last few days, Ethereum has exhibited new vigor coming from its own big holders. The latest trend indicates an increase in the number of wallets with over 10,000 ETH. It indicates fresh interest and long-term faith among the largest investors in Ethereum.

Source: X

There were two significant Ethereum transactions in the recent past. Together, they netted over $140 million worth of ETH. Almost $86 million went into a new wallet in one transfer. These transfers indicate big players anticipate an upward movement in Ethereum.

XRP vs. Ethereum is an example how behavior among whales could be interpreted in multiple ways among digital coins. While XRP waits for bullish flows, accumulation rises among Ethereum. Coming weeks might set further direction for both.

Related Reading: Bitcoin Liquidity Supply Tightens as Accumulator Activity Shows Strength

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