XRP Whale Activity Soars Amid Price Decline – A Classic Indicator of a Potential Rally

XRP has seen notable price pressure recently, nearing its lowest level of the year as the wider crypto market grapples with significant selling activity. However, a report from CryptoQuant reveals an intriguing trend: despite the downturn, XRP whales are becoming more active, suggesting a potential rally could be on the horizon.

Key Takeaways

XRP is trading near yearly lows, amidst a broader bearish sentiment in the crypto market.
Increased activity among XRP whales indicates strategic accumulation rather than panic selling.
Historical trends reveal that whale buying during downturns often precedes significant price recoveries.
The market is witnessing a shift towards aggressive buying, suggesting a potential reversal may be imminent.

Analyzing Whale Activity and Market Signals

XRP has faced significant downward pressure in recent trading sessions, moving closer to its lowest price point of the year as the overall crypto market continues to endure considerable selling. Market sentiment remains delicate, with many traders adopting a cautious stance while waiting for clearer macroeconomic signals.

However, recent insights from CryptoQuant illustrate that the situation may be more nuanced than the price charts depict. While XRP's price has declined in the short term, there is a noticeable uptick in activity among XRP whales, who are continuing to trade and accumulate even as engagement from retail investors diminishes.

This contrast between whale behavior and market sentiment is particularly significant. Historically, some of XRP's most substantial recoveries have initiated during phases of intense pessimism, where large holders quietly increase their positions instead of chasing after price rallies.

Data points to this trend: as the price retreats towards yearly lows, the volume of transactions driven by whales has increased, suggesting that significant wallet holders are restructuring their portfolios rather than withdrawing from the market.

Whale Accumulation Signals Potential XRP Bottom

The CryptoQuant report notes that the recent rise in whale activity aligns with patterns commonly observed during market bottoming phases. Large holders typically do not accumulate aggressively during strong uptrends; instead, they tend to build their positions discreetly during periods of market weakness when sentiment is low and prices are depressed.

Whales' readiness to buy XRP at its current low price indicates strategic positioning rather than impulsive speculation. This behavior is often seen as a pre-rally sign. When whales accumulate during price dips, it reflects confidence that these current price levels represent a good buying opportunity and that potential downside risk may be limited. Historically, such accumulation phases have preceded meaningful upward movements in XRP as the buying pressure from whales helps stabilize the market.

In support of this observation, the report identifies a pronounced shift in the XRP Spot Taker CVD, which has recently become taker-buy dominant. This shift means that aggressive buyers are currently contributing more to executed volumes, indicating strengthening demand. A taker-buy dominant CVD often occurs before sustained price rallies, suggesting that traders are increasingly willing to purchase at current prices instead of waiting for dips.

XRP Ledger Spot Taker CVD | Source: CryptoQuant

The combination of rising whale accumulation and a bullish CVD trend creates a more optimistic backdrop for XRP's medium-term prospects.

Price Dynamics: Testing Yearly Lows Amid Structural Weakness

XRP remains close to its yearly lows, with technical indicators showing a clear deterioration in trend structure. The price consistently trades below key moving averages—the 50-day, 100-day, and 200-day—suggesting that bullish momentum has not yet returned to the market. The repeated rejection at the 50-day moving average throughout November and December underscores the strength of the resistance above and a lack of consistent buying pressure from wider market participants.

XRP consolidates around key level | Source: XRPUSDT chart on TradingView

The $2.00 area, which has acted as critical horizontal support, has been tested several times over the last month. Each retest reflects lower volatility, indicating that selling pressure is decreasing, and sellers seem reluctant to pursue aggressive breakdowns. However, overall demand remains insufficient to foster a notable rebound. A definitive drop below this level could lead to a test of the $1.80–$1.90 support zone, where XRP previously consolidated during the early stages of the 2025 rally.

Volume analysis further confirms the overall downtrend. Noticeable spikes in selling activity contrast with muted buy-side volume, reinforcing the prevailing bearish structure, even as the on-chain whale accumulation trends become apparent.

For XRP to exit this downtrend, buyers must overcome the 50-day moving average and generate higher lows. Until this occurs, caution is warranted. Furthermore, whale activity must translate into visible buying demand, or the risk may continue to lean toward the downside.

Image from ChatGPT, chart from TradingView.com