XRP Whales Sell 90 Million Tokens – Will Ripple’s Price Decline Further?

Over the course of 72 hours, whales sold more than 90 million XRP, creating further downward pressure on the market.
Increased exchange inflows suggest potential selling pressure, while a high NVT ratio indicates possible overvaluation.
A decrease in Open Interest points to a lack of speculative confidence among traders.

Key Takeaways

Over the course of 72 hours, whales sold more than 90 million XRP, creating further downward pressure on the market.
Increased exchange inflows suggest potential selling pressure, while a high NVT ratio indicates possible overvaluation.
A decrease in Open Interest points to a lack of speculative confidence among traders.

Ripple's XRP is facing heightened scrutiny as whale transactions surged, with more than 90 million XRP sold in just three days. This significant selling activity reflects a cautious approach among major holders, often a precursor to short-term market corrections. Such whale actions can lead to high liquidity and increased volatility, forcing smaller traders to adjust their positions quickly. Nevertheless, these maneuvers may also indicate that whales are trying to take advantage of minor price recoveries before pushing prices down further. If this trend continues, XRP might struggle to regain upward momentum in the near future.

Whale selling hits XRP hard — Is a price breakout still possible?

Current Market Position of XRP

As of the latest data, XRP is trading within a descending channel and is currently around $2.40 after bouncing back from the $2.20 support area. This technical structure indicates ongoing pressure from both buyers and sellers, where bulls work to uphold significant support levels while bears aim to resist upward movement. A clear break above $2.65 could signal a bullish shift toward $3.12 and eventually $3.60. Conversely, failing to overcome the upper trendline may renew selling interest, keeping XRP trapped within a declining pattern. The ongoing battle between buyers and sellers underscores the necessity for a strong catalyst to achieve a decisive breakout.

XRP Price Chart Source: TradingView

Increased Exchange Inflows Indicate Selling Pressure

Recent exchange data reveals that over $16.8 million in XRP has been transferred to trading platforms, signaling that large holders are positioning themselves for potential sales. Historically, significant inflows have precedented increased selling pressure, as traders get ready to offload their positions amid market strength. This trend often restricts upward potential and can lead to temporary market imbalances. However, if inflows taper off while outflows increase, it may suggest renewed buying confidence. Until then, continuous deposits into exchanges imply that selling could dominate the near-term outlook, leaving XRP susceptible to price declines toward its recent support levels.

Exchange Inflows Source: CoinGlass

Concerns Over Valuation: Rising NVT Ratio

The Network Value to Transactions (NVT) ratio has surged by 104%, reaching 129.02, indicating XRP's valuation is climbing quicker than network usage. Such increases typically raise concerns of overvaluation, suggesting that market optimism may not correlate with actual transaction demand. An escalating NVT ratio often signifies reduced network utility or slowed on-chain activity despite rising prices. Nevertheless, temporary spikes can occur during consolidation periods as traders hold onto their tokens rather than conducting transactions. If the NVT ratio remains high for an extended time, XRP may experience a cooldown phase until its market cap aligns with actual activity levels.

NVT Ratio Chart Source: CryptoQuant

Declining Open Interest Signals Loss of Trader Confidence

As of this writing, XRP's Open Interest has dropped by 8.6% to $1.17 billion, indicating that traders are closing positions amidst recent market volatility. This decline suggests a fading speculative appetite and a decrease in leverage participation, often seen during periods of uncertainty following abrupt market movements. While lower leverage might reduce short-term volatility, it also signals diminishing conviction among bullish traders. This ongoing decline could create calmer market conditions but reflects hesitation from both long and short positions. Unless new momentum arises, the derivative market for XRP may continue to contract, mirroring a broader caution that could hinder attempts at price recovery.

Open Interest Chart Source: CryptoQuant

Is XRP Approaching a Turning Point?

The recent sell-off by whales and increasing inflows imply rising pressure on XRP. However, the current technical setup hints at potential resilience. A decisive move above $2.65 could indicate the beginning of a bullish recovery, while failing to maintain that level could trigger another price decline. Ultimately, the market direction hinges on whether buyers can absorb the ongoing activity from whales before momentum shifts again.