Surge in Whale Activity as XRP Holds at $2.30: Is a Bullish Trend Ahead?

Ripple (XRP) is gaining momentum behind the scenes. With whale transactions on the rise and exchanges seeing diminished balances, there's an underlying buildup that many seem to overlook. The current price movement suggests that a significant shift could be approaching, raising the question of not if it will happen, but rather how quickly.

Key Takeaways:

Whale transactions for XRP are surging, indicating increased accumulation.
The critical support level for XRP is currently at $2.30; its maintenance is vital for potential upward momentum.
Historical trends suggest that reduced reserve levels on exchanges could lead to significant price movements.
South Korean trading activity influences a substantial percentage of XRP transactions, heightening volatility during high-demand periods.

In conclusion, while bullish trends and whale accumulation patterns are showing promise, monitoring that critical $2.30 level will be crucial for XRP investors looking forward to potential price movements in the near future.

XRP dramatically increased from around $1.75 in December to a peak of $2.40 in early January 2026, before pulling back by 12% to $2.118 amid bearish signals.

XRP Price Chart Source: TradingView

The $2.30 mark has emerged as a crucial support level, coinciding with previous resistance points; the recent peak was at $2.40, while the upcoming resistance levels hover between $2.50 and $2.75. The general trend appears bullish, although the potential exists for a downturn if support at $2.00 is breached.

Patterns of whale accumulation are associated with spikes in large transactions, and decreasing exchange balances bolster the bullish case, indicating that investors are holding through dips.

Whale Accumulation – The Significance of the $2.30 Level

Recent data from Santiment reveals a sharp increase in whale activity for XRP, noting a significant jump in transactions over $100,000, which reached 2,170 on January 5 and further escalated to 2,802 on January 6, both marking three-month highs.

This uptick aligned with a positive price response, as XRP surged from approximately $1.80 to a peak of $2.38, representing a 30% gain year-to-date. However, after this rally, the price retreated by about 3-5% and has since stabilized around the critical $2.30 level as of January 8.

Whale Activity Report Source: Santiment

The $2.30 level is significant because it functions as a vital pivot point that corresponds with previously established resistance now acting as support, alongside the 200-period EMA on longer-term charts. If this support is maintained, it could enable upward movement toward the $2.50 to $2.75 range. Conversely, if this support fails, it could trigger profit-taking and shift the price down to $2.00 or lower.

Additionally, Santiment indicates potential volatility driven by whale activity, compounded by limited exchange supply, ongoing ETF inflows, and a broader pattern of institutional rotation.

Bullish Signal or False Alarm?

Crypto analyst CW8900 has observed a decline in XRP reserves on the Upbit exchange, which is a sign of fresh outflows. Historically, this type of signal has been significant. For instance, in November 2024, XRP reserves on Upbit dropped sharply by around 0.8 billion tokens, coinciding with a price surge from $0.50 to $3.29, illustrating a classic supply squeeze where fewer tokens on exchanges reduced selling pressure.

XRP Supply Dynamics Source: X

A similar situation appears to be developing now, as Upbit's reserves continue to decline while the price edges higher toward $2.30. This trend illustrates a well-known dynamic: when XRP is withdrawn from exchanges, it indicates a holder's intention to retain rather than sell, causing greater price shocks when demand rises.

The context further underlines this signal, as South Korean traders have historically made up a substantial portion of XRP trading volume, often representing 30-50% of global activity. During times of increased local demand, it’s not uncommon for reserves to diminish rapidly. Continued declines in reserves may lead to expanded price volatility, with historical data suggesting increased upside risks when supply challenges meet rising demand.