Since its launch in June 2012 by Ripple Labs, XRP has set itself apart as one of the leading digital assets focused on transforming global finance via fast and affordable cross-border transactions. Instead of relying on a chain of banks and facing long wait times, users can connect through one system to transfer money almost instantly. Rippel doesn’t control the XRP Ledger, but it helps maintain it by using trusted validators to confirm transactions. XRP is the go-to choice for institutions seeking both speed and sustainability in payments, but it has yet to prove its long-term viability.
Many investors closely watch the XRP news today to gauge short-term price action and long-term market dynamics. A key development shaping sentiment is that large XRP holders have resumed distribution over the past few weeks, which could translate into profit-taking or loss of confidence in the short term. Since July 9, whale wallets have offloaded more than 640 million tokens, and at current prices, the total value of these outflows exceeds $1.91 billion. CryptoQuant’s 90-day moving average of the XRP whale flow indicator has turned sharply negative.
It’s The Second Time In The Last Year That XRP Whales Have Been Distributing
According to on-chain data, this is the second major distribution event by large XRP holders within the past 12 months. Between November 2024 and January 2025, whales sold or transferred some of their holdings, thereby lowering their investment, even if XRP experienced a notable rally during that timeframe. Retail demand absorbed much of the selling pressure, which means there were enough buyers stepping in due to the fear of missing out (FOMO). Major drivers of FOMO were the positive developments in Ripple’s legal case against the SEC and ETF-related speculations.
When Large Holders Distribute Their XRP, Prices Often Correct Downwards
XRP whales may influence the market due to their large holdings. When they transact a large number of XRP, the sudden influx of sell orders often overwhelms buyers, causing the price to drop rapidly as the market struggles to absorb the additional supply. To be more precise, large sell orders increase supply, leading to more extreme intraday swings as traders pursue bids and offers. The reduced liquidity around key price levels means there are few buyers and sellers at those critical points, so outsized moves cause price gaps or sharp, volatile moments.
When XRP whales move assets to cryptocurrency exchanges, it’s commonly interpreted as a prelude to selling, further amplifying bearish sentiment. Bearish sentiment describes an outlook where traders and investors anticipate declining prices and exit positions to avoid further losses. It’s a temporary or localized market mood, whereas a bear market is a prolonged period of declining prices, typically a drop of 20% (or more) from recent highs. Whale behavior can indicate bullish sentiment when tokens are moved into cold storage rather than trading platforms.
Not Every Large On-Chain Transfer Signals An XRP Sale
Indeed, large XRP transactions are being observed on the blockchain, but they might not necessarily be sales or a move to dump tokens on the market. Whales tend to split or consolidate holdings across numerous addresses for security, bookkeeping, or compliance reasons. A transfer could be part of an over-the-counter (OTC) deal, where XRP is sold directly to a buyer without going through a public exchange, and this type of transaction involves several intermediary wallets before the final destination is reached. In some cases, what appears to be a great wealth transfer could simply be a data error.
Institutions and cryptocurrency investment funds regularly rebalance their reserves to manage risk, lock in profits, and maintain target portfolio allocations, shifting tokens between custodial providers, partners, or internal accounts. Treasury movements can resemble whale flows since both involve large-scale transactions that can move markets or give rise to speculation. The total supply of XRP available for trading remains the same. Knowing the difference between the two requires a combination of on-chain analysis, contextual understanding, and access to tagged wallet data, and it can give you an edge in interpreting market movements and anticipating potential volatility.
XRP’s Market May Remain Weak Unless Whales Start Buying
The current market for XRP doesn’t present strong, fundamental signs of health, and this weakness could manifest as a lack of sufficient upward momentum, increased volatility, or a struggle to maintain its price level. More specifically, price movements are out of sync with underlying fundamentals or market stability. A reversal or correction could be on the horizon. If whale wallets were to accumulate more XRP tokens – 5 million or more – it could signal confidence in XRP’s future. Buying XRP could stabilize prices by creating a demand cushion and encouraging smaller investors to follow suit.
The market’s health hinges on what individuals or organizations that own significant amounts of XRP do. There’s no sign of consistent accumulation from large holders, but if they jump in and buy XRP regularly, it could boost sentiment and strengthen its foundation. Even Ripple co-founder Chris Larsen allegedly transferred $26 million worth of XRP to exchanges or other services, potentially undermining trust. According to cryptocurrency analysts, the altcoin market doesn’t have the sustained capital and structural demand required to exert buying pressure. Until the situation changes, the capital shift from Bitcoin to the broader market remains short-lived.
XRP Needs To Maintain Support Above $2.65 To Avoid A 30% Decline
Maintaining the $2.65 mark is paramount since, at this level, demand is strong enough to stop the decline. Experts suggest that if prices were to fall below this level, it would indicate a breakdown of the current upward trend and lead to a deep correction, that is, a rapid decrease by 30% in prices. It’s advisable to only allocate capital you can afford to retrace to 30% and place stop-loss orders just below $2.65 to limit unexpected fallouts. Build your full position size gradually rather than buying XRP all at once to risk less capital on your initial guess. This allows you to confirm the market is moving in your favor before committing more capital.
