How 'Great Divergence' Could Transform XRP's 11% Decline into New Opportunities

As we reach the midpoint of January, the volatility in the cryptocurrency market is just beginning to unfold.

Key Takeaways

Ripple's XRP faced an 11% decrease this week, making it the poorest performer among top cryptocurrencies.
XRP rallied over 12% in early January, outpacing Ethereum's gains during the same time.
Whale investors are displaying significant confidence, illustrated by the movement of 219 million XRP to unknown wallets.
A “great divergence” is emerging, suggesting a potential supply shock that could reverse current trends.
Key support levels are forming around $2.10, with the possibility of XRP rebounding.

XRP

After starting 2026 with strong momentum, many leading cryptocurrencies, including Ripple's XRP, have seen recent declines. XRP experienced a drop of 11% this week, bringing attention to market dynamics and investor behaviors amidst these fluctuations. This article explores whether this decline is merely a temporary cooldown or could signify a deeper trend, particularly focusing on the activities of whale investors and the potential for a rebound.

Analyzing XRP's Recent Performance

Following a robust start to 2026, many high-cap cryptocurrencies have recently dipped into the red. The pivotal question arises: Is this merely a cooldown after a rally, or is it the beginning of a more significant trend shift?

XRP, in particular, has a lot at stake. The cryptocurrency surged over 12% from late December to early January, nearly doubling Ethereum's performance during that stretch. Given this context, a downturn seemed almost expected.

CoinMarketCap data reveals that XRP is down about 11% for the week, making it the weakest performer among top cryptocurrencies. Resistance was notably strong around the $2.50 mark, where profit-taking became prevalent.

XRP's Liquidity as Whales Navigate Market Turbulence

Ripple is now witnessing what traders refer to as a “great divergence.” From a technical standpoint, XRP’s recent 11% drop appears to be a standard post-rally correction, with retail investors securing profits as the momentum waned. This scenario brings attention back to whale activity.

Recent data from whale trackers indicated that approximately 219 million XRP was transferred between unknown wallets, reflecting a strategic move by whales to weather market volatility instead of selling off in panic.

Ripple

This aligns with AMBCrypto's analysis of ongoing whale accumulation. Summing it up: XRP whales are demonstrating strong conviction, complemented by recent ETF inflows of $4.9 million and $22 million being withdrawn from exchanges.

Resultantly, this creates a “supply shock,” which traders are calling a great divergence. Given this situation, XRP’s short-liquidity wall around $2.10 is becoming increasingly important. With strong buy orders present, it seems only a matter of time before XRP clears this hurdle, potentially turning the 11% drop into a classic “bear trap.”

Conclusion

As the market continues to evolve, XRP's current situation presents both challenges and opportunities. The actions of whale investors and emerging market dynamics will be crucial in determining the future trajectory of XRP. Keeping a close eye on these developments could provide insights into potential rebounds or further declines in the cryptocurrency landscape.