Ripple's (XRP) Key Indicator Signals Evident Danger
In the world of cryptocurrencies, the movement of large investors, known as whales, can significantly impact the market. Recently, the Ripple's native token, XRP, has been experiencing a decline in whale flows, which has raised concerns among analysts.
According to The Enigma Trader, the market may remain structurally weak unless sustained positive whale flows are observed. This sentiment is supported by on-chain dynamics, which show a plunge in XRP's exchange reserves from 3.02 billion to 2.3 billion since July 24.
The move above $3.40 for XRP, which occurred earlier in 2025, likely acted as a bull trap, tapping into buy-side liquidity before a swift reversal. As a result, XRP is now down over 15% relative to its all-time high recorded in July.
The decline in XRP whale flows can be attributed primarily to profit-taking by whales after XRP reached peaks around $3.40 to $3.65. After selling off large amounts (over $6 billion from mid-July), these whales created selling pressure that contributed to price declines from the highs to levels around $1.60 to near $3.00.
Data also reveals massive whale transactions moving XRP to exchanges, which is often a precursor to selling, amplifying downward price moves. The current consolidation above $2.70 for XRP may give way to deeper downside unless buyer momentum returns.
However, recent data shows phases of strategic accumulation by whales following these dips. About 1.2 billion tokens ($3.8 billion) were amassed over a few days in early August, and another $372 million was amassed amid recent dips in mid-August. This accumulation coincides with positive on-chain signals and broader adoption news such as Ripple’s involvement in cross-border payment enhancements.
Moreover, renewed whale accumulation is linked to developments like Ripple’s acquisition of Rail and fading legal uncertainties with the SEC, which increase long-term confidence and could support price recovery or growth. Whale activity tends to align with key resistance levels and market technicals, where strong accumulation or selling can trigger rapid price moves, including potential rallies or drops depending on whether resistance levels hold.
In summary, the initial decline in whale flows was largely due to profit-taking and offloading of XRP, causing significant price drops. However, recent whale accumulation amid dips and positive ecosystem news points to potential stabilizing or bullish impacts on XRP's price going forward. The whale behavior remains a strong indicator of XRP market direction due to their outsized influence.
Currently, XRP is trading at $3.30, up 10.8% in 24 hours and 11% on the week. Despite the recent decline in whale flows, there are still significant catalysts for XRP, such as increasing institutional adoption. Major news emerged from South Korea where licensed institutional custodian BDACS launched XRP custody services.
In the last 14 days, XRP is up by 7%, but the monthly chart still shows a strong 42% gain. The market will continue to monitor whale activity closely to gauge the direction of XRP's price movement.
[1] CoinDesk [2] The Block [3] Cointelegraph [4] Bitcoinist [5] Ripple Insights
- Technology-driven finance is closely watching the crypto world, particularly the blockchain-based Ripple, as the movement of large investors, known as whales, significantly impacts the market.
- Amid concerns regarding the decline in whale flows for Ripple's native token, XRP, there has been a strategic accumulation of XRP by whales following dips, which points to potential stabilizing or bullish impacts on XRP's price going forward.
- As institutional adoption of XRP increases, as shown by the recent launch of XRP custody services by licensed custodian BDACS in South Korea, the trading landscape for crypto wallets containing XRP could witness a shift, influencing the overall market dynamics.
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