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XRP has experienced a significant retracement following a dramatic rally, raising concerns about whale activity and market direction.
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Recent data indicates that large holders of XRP are selling off their positions, potentially signaling a shift in market dynamics.
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According to industry analyst Ki-Young Ju, the current market conditions suggest that XRP is in a distribution phase, with whales actively offloading their holdings.
Discover the current state of XRP as whale activity picks up and market analysts assess the altcoin’s future following President Trump’s strategic crypto reserve announcement.
XRP Faces Increased Selling Pressure from Whales
XRP is currently trading at approximately 30% below its all-time high, and indications from on-chain analysis suggest that large holders may be liquidating their positions. CryptoQuant’s founder, Ki-Young Ju, highlighted a significant uptick in **whale selling** around the $2 to $3 price range based on the XRP volume bubble map, revealing enhanced trading activity in this bracket.
While spikes in trading volume often hint at potential buying interest, Ju asserts that the current trend reflects a **distribution phase**, where major investors gradually divest to secure profits. This maneuver typically occurs following an extended uptrend, indicating a strategic shift among key market players.
Evidence of Distribution Phase Supported by Whale Flow Metrics
Onchain analyst Maartunn corroborated Ki-Young Ju’s observations, pointing out that XRP is indeed in a distribution phase. Analyzing whale flows, Maartunn found that negative flows based on the 30-day moving average (30-DMA) have reached unprecedented levels, highlighting a lack of accumulation from larger holders. Maartunn commented, “This metric shows the Whale Flow. They are offloading $XRP like never seen before”, adding urgency to the discussion of market stability.
Further insights came from the XRP exchange reserves on Binance, which increased sharply from 2.72 billion to 2.90 billion tokens. This surge suggests heightened selling pressure, reinforcing the narrative surrounding the ongoing distribution phase.
Analysts Caution XRP Below $2.50 Threshold
Amidst the volatility, market analyst Dom noted that XRP’s failure to maintain a volume-weighted average price (VWAP) of $2.70 may pose a challenge for sustaining any upward momentum. He emphasized, “For future rallies to materialize, XRP must establish support above the $2.50 range.”
Conversely, investor Dami DeFi expressed optimism regarding XRP’s trajectory. He pointed to a potentially bullish consolidation pattern forming below key resistance levels, suggesting that the cryptographic support from President Trump may push XRP into new price discovery if pivotal levels are reclaimed.
However, not all analysts are convinced of XRP’s bullish potential. Cybersecurity expert Matt C has critiqued the altcoin’s momentum, positing the development of an inverse head and shoulder pattern. He argued that **lower highs** forming on the relative strength index (RSI) of XRP’s daily chart indicate that the sudden price surge represents mere “exit liquidity” for retail investors.
Market Reactions and Future Outlook
The contrasting views among analysts exemplify the underlying uncertainty in the cryptocurrency market. While some believe XRP could regain traction with continued institutional support, others warn of the risks associated with whale-dominant sell-offs leading to price fluctuations. Observations such as the ongoing $150 million liquidation event in the broader crypto sphere highlight the volatile landscape investors must navigate.
Conclusion
The trajectory of XRP remains highly dependent on the actions of large holders and market sentiment. With whales actively selling off their positions, traders must stay alert to potential shifts in price dynamics and emerging patterns. As analysts continue to dissect market trends and investor behavior, one clear takeaway is that XRP’s next moves will be closely watched by crypto enthusiasts and market strategists alike.
