XRP whales are ramping up their sales at unprecedented levels, with net outflows reaching $50 million per day. This significant selling pressure comes amid a delicate consolidation phase in the crypto market. Investors are now closely monitoring the wallets of large holders to predict future price movements.
On-chain data reveals a concerning trend: wallets holding more than 10 million XRP have been systematically reducing their positions for several weeks.
Blockchain analytics platforms are recording massive transfers to centralized exchanges, typically precursors to imminent sales. This intensification of outflows strongly contrasts with the accumulation period observed in late 2024.
The current pace represents approximately $50 million in daily outflows, a statistic that places XRP among the cryptocurrencies experiencing the most intense selling pressure in the market. Whales who had been strategically accumulating for months now appear to be taking profits. This redistribution increases short-term volatility.
Trading volumes confirm this dynamic, with regular spikes coinciding with major wallet transfers. Order books show an accumulation of sell walls at key psychological levels, suggesting a gradual exit strategy rather than a brutal dump. This measured approach, however, doesn’t prevent constant downward pressure on the price.
XRP is struggling to maintain its rallies. The 4H Volume Profile Order Blocks indicate obvious selling pressure. Currently near the bottom of its triangle, XRP could retest, or even break below, the trendline at $2.67.
Nevertheless, the RSI on the 4H timeframe is approaching oversold territory. It will be important to watch for a potential bullish divergence that could signal an imminent bounce.
A break of the trendline and a return to $2.5 could present a buying opportunity. On Binance, a buy order wall of more than 1 million XRP sits at $2.7, potentially cushioning the fall.
In summary, if the correction continues, the support around $2.7 will be worth watching. A break below $2.67 could allow for a bounce to $2.55, another zone to monitor alongside the RSI.
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On one hand, the sector rotation observable in the crypto market could be pushing these investors toward other opportunities deemed more promising in the short term. Bitcoin and certain altcoins are showing superior relative performance, naturally attracting capital. Whales, often more agile than retail investors, quickly reallocate their positions based on market conditions.
Finally, portfolio management considerations may be motivating these sales. After months of accumulation and facing high valuations, a diversification strategy becomes relevant to minimize exposure to a single asset. This risk management discipline typically characterizes sophisticated institutional investors.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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