$98.6 Million XRP Outflow Triggers Whale Activity as Price Holds Steady at Key Support Level

A significant transfer of 42 million XRP, valued at approximately $98.6 million, from the Gemini exchange to an undisclosed wallet has sparked discussions about large-scale accumulation among investors. This movement coincides with XRP's price consolidating near its critical support levels of $2.20 to $2.30, suggesting that major players may be capitalizing on lower prices.

Key Takeaways

A large transfer of 42 million XRP indicates bullish sentiment and accumulation at crucial support levels, reflecting increasing investor confidence.
Funding Rates surged by 247%, showcasing heightened market activity and speculation for a price rebound.
Historical trends suggest that such outflows typically signify whales are securing their assets for long-term investment instead of short-term trading.
XRP's position near the $2.20–$2.30 support zone demonstrates that institutional investors are seizing opportunities in the current market.

Whales move $98M in XRP – Could accumulation trigger a strong recovery rally?

XRP Price Tests Vital Support as Market Shows Consolidation

XRP has been trading within a descending channel, fluctuating between $2.20 and $2.65. Presently, the price movement showcases decreasing volatility. The ongoing defense of the $2.20 support level is notable as it signifies a key accumulation area, where bullish demand is absorbing selling pressure. The Relative Strength Index (RSI) currently sits around 42, suggesting mild oversold conditions that could lead to a potential technical rebound. If XRP manages to break the $2.65 resistance, it may trigger a short-term upward movement toward $3.12. Conversely, if selling pressure pushes the price below $2.20, bearish momentum might build up before buyers retake control.
XRP Price Chart
Source: TradingView

Increasing Buyer Activity as Spot Taker CVD Turns Bullish

The Spot Taker Cumulative Volume Delta (CVD) has shifted, showing a preference for buying above selling, which indicates that bullish traders are becoming more active. This indicator measures the difference between buying and selling pressure, and the current positive trend suggests growing confidence among traders in the spot market. Buyers are making active purchases, anticipating price reversals as they approach crucial support levels. This rising CVD trend aligns with whale accumulation, reflecting both retail and institutional traders positioning themselves for upward potential. Consequently, this increased buying momentum may limit downside risks in the short term.
CVD Chart
Source: CryptoQuant

NVT Ratio Decline Signals Enhanced Network Health

As of now, the Network Value to Transaction (NVT) ratio has dropped by 30.7% to 75.93, suggesting that XRP’s transaction volume is rising faster than its market capitalization. A falling NVT ratio generally indicates improved efficiency on the network, meaning it is handling more transactions relative to its overall valuation. This trend may hint at undervalued market conditions, implying a potential recovery phase for XRP. Therefore, this decrease points to strengthening fundamental activity despite the current subdued price. If this improvement continues on-chain, investor confidence may be renewed, encouraging steady accumulation across the broader market.
NVT Ratio Chart
Source: CryptoQuant

Surging Funding Rates Indicate Long Traders Regaining Control

Funding Rates have dramatically increased by 247.57%, indicating a significant rise in leveraged long positions on XRP’s perpetual contracts. This surge reflects escalating optimism among traders who are anticipating a short-term rebound. Positive Funding Rates usually imply that traders are willing to pay premiums to maintain long positions, reinforcing a bullish sentiment in the derivatives market. However, this aggressive positioning may also elevate liquidation risks if the price fails to maintain upward momentum. Regardless, the vigorous activity in derivatives signals that speculative confidence is returning, setting favorable conditions for a possible breakout above the $2.65 resistance level.
Funding Rates Chart
Source: CryptoQuant

In conclusion, the accumulation by whales, the rise in buyer activity, and enhanced network efficiency create a positive outlook for XRP. The $2.20 support level has demonstrated resilience, fostering renewed confidence in both spot and derivatives markets. With increasing buying pressure and surging Funding Rates, the momentum now leans towards an upward movement. A decisive breakout above the $2.65 resistance could pave the way for XRP to reclaim higher price levels in the upcoming sessions.