XRP Whales Limit Selling as Wallet Growth Reaches Eight-Month High

XRP whales cap selling as wallet growth hits 8-month high

The XRP market is experiencing significant changes, with a surge in new wallet creations and stabilization among whale selling activities. This development comes in the backdrop of struggling prices and a notable increase in transaction volume on the decentralized exchange.

Key Takeaways:

In a span of 48 hours, over 21,000 new XRP wallets were established, marking the fastest growth seen in eight months.
Despite XRP's price fluctuations, record transaction volumes on decentralized exchanges suggest a mix of trading activities that may not be driven by genuine demand.
Whale wallet outflows appear to have stabilized after $650 million in sales, indicating a potential bottoming out for XRP.

XRP closed at $2.20 on Tuesday, hitting its lowest point since July 4, before bouncing back 16% to $2.40 after reaching monthly lows of $2.06 on Thursday. Despite this relief rally, the cryptocurrency continues to face challenges in regaining bullish momentum, as market sentiment remains cautious.

Cryptocurrencies, Ripple, Bitcoin Price, Technology, XRP, Markets, Cryptocurrency Exchange, Derivatives, Financial Derivatives, Price Analysis, Market Analysis, Altcoin Watch XRP one-day chart. Source: Cointelegraph/TradingView

Onchain data reveals a surge in activity within the XRP Ledger. According to the analytics platform Santiment, the number of new XRP wallets rose sharply, resulting in over 21,000 new wallets created in just 48 hours—the highest growth rate recorded in the last eight months.

Moreover, findings from CryptoQuant show unprecedented activity on the XRP Ledger's native decentralized exchange (DEX), with 954,000 transactions making it the most active day in recent history. Generally, such increases are indicative of enhanced network health and user adoption; however, this growth coincides with a drop in XRP prices, raising questions about the reasons behind the heightened activity.

Cryptocurrencies, Ripple, Bitcoin Price, Technology, XRP, Markets, Cryptocurrency Exchange, Derivatives, Financial Derivatives, Price Analysis, Market Analysis, Altcoin Watch XRP Ledger DEX transaction count. Source: CryptoQuant

Experts suggest that this discrepancy might point to a substantial portion of the transaction volume being attributed to whale distributions, arbitrage, or automated trading rather than organic purchases.

Related: XRP Receives Legal Recognition as Property in India: Why This Court Ruling Matters

Insights on XRP Whale Movement Indicate Price Stability

XRP has been experiencing a prolonged downtrend since reaching its peak price of $3.66 on July 18, largely due to continued whale selling. Over the last 90 days, the negative whale flows have exceeded $650 million, showcasing steady large-scale outflows.

However, recent trends suggest this may be changing, as whale flows have shifted to a neutral stance over the same 90-day period, indicating possible early signs of a market bottom.

Cryptocurrencies, Ripple, Bitcoin Price, Technology, XRP, Markets, Cryptocurrency Exchange, Derivatives, Financial Derivatives, Price Analysis, Market Analysis, Altcoin Watch XRP Whale Flow 90-day moving average. Source: CryptoQuant

Crypto analyst Crazzyblockk pointed out that futures data from Binance displayed a significant difference in perspective between XRP and larger cryptocurrencies. While Bitcoin and Ether futures experienced notable declines in open interest, seeing figures drop to $59.87 million and $148.69 million respectively, XRP's futures positioning appeared to remain more resilient.

“Traders seem to be shifting their focus to XRP,” the analyst observed, indicating that they are taking advantage of minor dips to build their positions—a contrast to the risk-averse sentiment prevailing in the BTC and ETH markets.

As whale selling begins to slow and new wallet creation accelerates, the onchain and derivatives data for XRP suggest the potential for stabilization, though corroboration from price movements remains essential.

Related: XRP Price Shows Classic 'Hidden Bullish Divergence.' Is $5 Still in Play?