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XRP whale flows have turned bullish in May, signaling renewed investor interest and a potential triple-digit price rally for the cryptocurrency.
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Wallets holding over 1 million XRP reached an all-time high, while mid-tier wallet growth rose by 6.2%, indicating strong conviction among long-term holders.
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According to COINOTAG, XRP’s 90-day moving average whale flows flipping positive marks a critical shift that could precede a significant breakout in Q4 2025.
XRP whale flows turn bullish in May, with wallet growth and onchain data suggesting a potential breakout and renewed investor confidence in 2025.
XRP Whale Flows Signal Renewed Bullish Momentum
Recent onchain data reveals that XRP whale flows, measured by the 90-day moving average, have shifted from negative to positive territory as of May 2025. This change is significant because it marks the end of a prolonged outflow period that lasted from January through April. Historically, such a reversal in whale activity has preceded major price rallies, as large holders accumulate in anticipation of upward momentum. The data suggests that whales are positioning themselves for a potential breakout, which could drive XRP to new highs in the coming months.
Historical Correlation Between Whale Flows and Price Breakouts
Analysis of past trends shows a strong correlation between positive whale flows and subsequent price surges. For instance, the bullish trend in whale flows that began in August 2024 aligned with a remarkable 420% price increase for XRP in Q4 of that year. This pattern underscores the importance of whale activity as a leading indicator for market movements. Given that current whale flows have surpassed last year’s levels, market participants should closely monitor this metric for signs of an impending rally.
Investor Confidence Evident in Wallet Growth Metrics
Complementing the bullish whale flow data, wallet statistics reveal a notable increase in XRP holdings among large investors. Wallets containing over 1 million XRP have reached an all-time high of 2,850, while mid-tier wallets holding more than 10,000 XRP have grown by 6.2% year-to-date. This accumulation trend highlights sustained confidence in XRP’s long-term prospects despite recent price stagnation. Such growth in large-scale holdings often precedes significant market moves, as it reflects strong conviction from institutional and high-net-worth investors.
Sentiment Analysis Highlights Growing Optimism Amid Legal Uncertainty
Sentiment data from Santiment indicates that XRP’s market sentiment has climbed to a 17-day high, driven in part by developments in Ripple’s ongoing legal battle with the SEC. The stalled $50 million settlement talks have injected cautious optimism into the market, contrasting with declining retail interest in Bitcoin and Ether. This divergence suggests that XRP may benefit from renewed attention and capital inflows as investors anticipate a favorable resolution or clearer regulatory outlook.
Legal Developments Continue to Influence XRP’s Market Dynamics
The legal case between Ripple and the SEC remains a critical factor shaping XRP’s market trajectory. On June 26, District Judge Analisa Torres denied a motion for an indicative ruling, reinforcing the court’s authority over any private settlement agreements. The judge emphasized that the parties cannot circumvent a final judgment without following formal appeals procedures. This ruling maintains the legal overhang but also clarifies the judicial process, providing market participants with a clearer framework for assessing future risks and opportunities.
Implications of the Court’s Decision on XRP’s Regulatory Outlook
Judge Torres’ decision underscores the importance of judicial finality in the Ripple case, signaling that any resolution must adhere to established legal channels. This reduces uncertainty around potential out-of-court settlements that could have ambiguous regulatory implications. For investors, this clarity is crucial as it allows for more informed risk assessment and strategic positioning ahead of possible market-moving events related to the case’s outcome.
Conclusion
The recent shift in XRP whale flows to bullish territory, coupled with strong wallet growth and improving sentiment, points to a potentially significant breakout in the near future. While the ongoing SEC litigation continues to cast a shadow over XRP’s regulatory status, recent court rulings have provided greater clarity on the legal process. Together, these factors suggest that XRP is poised for renewed investor interest and market activity, making it a cryptocurrency to watch closely in the coming quarters.
