XRP Under Pressure as Whale Outflows Surge

Large holders of XRP are starting to sell their assets again, raising concerns among analysts that this may negatively impact the token's price in the near future.

Key Takeaways

Large XRP holders are selling their assets, impacting the token's price.
Recent data shows a significant drop in whale inflows, flipping the trend to negative.
Historical patterns suggest that these outflows may lead to price corrections, similar to earlier this year.
XRP's price is currently caught in a short-term range, with potential for movement depending on whale activity.

XRP Under Pressure as Whale Outflows Surge

Recent findings indicate a significant increase in whale outflows of XRP, which may signal a downturn in the market. Analysts highlight historical trends that show similar patterns leading to price declines. Unless there is a return to substantial inflows, XRP could face continued pressure.

Analysis of XRP's Whale Activity

On August 7, a CryptoQuant analyst reported a notable decrease in the 90-day average whale inflow for XRP, which has now turned negative. This shift indicates a renewed trend of large wallets offloading their holdings, moving away from the previous accumulation behavior.

Drawing on historical data, the analyst pointed out that a similar outflow occurred earlier this year right before a price peak in February. At that time, price fell nearly 50% over several weeks due to sustained selling.

“A comparable pattern unfolded in January–February, when a local price top coincided with sustained whale distribution and a subsequent correction,” the analyst noted.

Whale Flows Turn Deeply Negative, XRP Faces Renewed Distribution Pressure

The analyst further emphasized that although the current outflow phase appears shorter, the circumstances are reminiscent of those earlier this year, showing significant outflows with no immediate signs of reversal. In addition, analyst Ali Martinez indicated that over 720 million XRP have been sold in recent weeks, intensifying the token's downward pressure.

Large movements by whales often influence market prices, and extensive sell-offs typically result in price declines. Analysts caution that unless daily inflows exceed 5 million XRP, the market may remain weak and vulnerable.

At present, XRP is trading at $3.08. Although it has increased by about 4.7% in the last 24 hours, its performance over the past week has been negative. After reaching a peak of $3.6 in July, XRP has found it challenging to regain upward momentum.

On the daily chart, XRP shows some strength, maintaining its position above important moving averages. The price is currently fluctuating within a range of $2.95 to $3.10, with no clear breakout in sight.

The Relative Strength Index (RSI) has risen into neutral territory, hovering around 54, which suggests the market is currently balanced, allowing for potential price movement in either direction.

If whale inflows return to targeted levels, this could create renewed momentum and drive the price higher. However, if the trend of outflows persists, XRP may continue to face pressure, with risks of further price decline.