Whale Activity Drives Downward Pressure on XRP
Over the past week, XRP has experienced a significant price decline, dropping 13% to its current trading value of $2.26. This downturn is closely linked to substantial sell-offs by large token holders, commonly referred to as “whales,” who have offloaded hundreds of thousands of XRP tokens. The increased selling activity from these whale wallets, coupled with broader market shifts, has intensified downward pressure on XRP’s price.
Analyst and On-Chain Insights
Analyst Ali Martinez highlighted that whale addresses holding between 100 million and 1 billion XRP have been reducing their holdings recently. This trend coincided with a sharp price decline for XRP, falling from above $3.00 to the $2.40 range during this period. Data from CryptoQuant indicates that transfers of XRP from large wallets to exchanges have decreased since the end of October, with notable spikes in activity recorded earlier in the month. The 30-day average of these transfers has also trended downward, suggesting reduced sell-side pressure.
Technical Analysis and Market Patterns
Technical analysis reveals that both XRP/USD and XRP/BTC pairs have closed bearish recently, following an increase in Bitcoin dominance. The intraday chart shows strong volatility, with the price oscillating within a narrow range. Some analysts note that XRP is currently supported by a buying wall but caution that selling walls exist until $2.57. The current pattern may be part of a broader five-wave move, with the final leg potentially targeting the $2.00 zone.
Ripple’s Strategic Institutional Initiatives
In a strategic move to bolster its institutional offerings, Ripple has announced the launch of a digital asset spot prime brokerage service in the United States. This platform enables institutional clients to execute over-the-counter spot transactions for a range of digital assets, including XRP and the RLUSD stablecoin. Additionally, Ripple recently acquired Hidden Road, expanding its custody services beyond banks to include fintechs, corporates, and crypto-native firms.
Bottom Line
The recent price decline of XRP underscores the significant impact that whale activity can have on the cryptocurrency market. While technical indicators suggest potential further downside, Ripple’s strategic initiatives aim to strengthen its position in the digital asset space. Investors should closely monitor whale movements and broader market trends to make informed decisions regarding XRP.
