Ripple’s XRP saw a 4% decline on Thursday, struggling near the $2.12 support level amid broader market volatility. Despite the downturn, on-chain data reveals a fascinating shift in market dynamics: short-term holders are exiting positions, while large investors—commonly known as “whales”—are actively accumulating, snapping up over $1 billion worth of XRP during the pullback.
This divergence in behavior highlights a classic market cycle—panic selling by retail investors and strategic buying by deep-pocketed players. Understanding these patterns can offer valuable insights for traders navigating the current crypto landscape.
Short-Term XRP Holders Drive Selling Pressure
Recent on-chain analytics from Santiment show that short-term holders have been the primary source of selling pressure following the latest market correction.
The SOPR (Spent Output Profit Ratio) and Coin Age Consumption metrics provide a granular view of when different investor cohorts are selling. Data indicates that tokens held between 1 to 7 days and 90 to 180 days have dominated recent outflows.
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- 1D–7D Holders: These investors appear to be cutting losses quickly after the price drop, likely entering near recent highs.
- 90D–180D Holders: This group, having held through much of Q1 2025, moved swiftly to lock in profits before prices fell below their average cost basis.
This behavior is typical during corrections—short-term traders react emotionally to price swings, while longer-term investors assess fundamentals and macro trends.
Whales Accumulate Over $1 Billion in XRP
While smaller holders exit, XRP whales are stepping in with significant accumulation.
Since Monday’s market dip, wallets holding between 1 million and 10 million XRP, and 10 million to 100 million XRP, have collectively added 440 million XRP—valued at nearly $1 billion at current prices.
Such large-scale buying during downturns often signals confidence in future price recovery. Historically, whale accumulation phases precede major rallies, as seen in previous cycles with Bitcoin and Ethereum.
The supply distribution data from Santiment confirms this shift: large addresses are absorbing sell-side pressure, potentially stabilizing the market and setting the stage for a rebound once sentiment improves.
Ripple Expands Institutional Footprint in South Korea
Amid market turbulence, Ripple continues to strengthen its institutional infrastructure.
On Wednesday, the company announced a partnership with BDACS Korea, a licensed digital asset custodian, to expand secure custody services for institutions in South Korea. The platform will leverage Ripple Custody to safeguard clients’ XRP and RLUSD, Ripple’s U.S. dollar-pegged stablecoin.
This collaboration aims to:
- Enhance institutional adoption of RLUSD
- Support developers building on the XRP Ledger
- Strengthen ties with Busan, South Korea’s blockchain regulatory sandbox
South Korea is one of the largest geographic markets for XRP trading volume, making this expansion strategically significant. Increased institutional custody could reduce circulating supply and boost long-term demand.
Technical Outlook: Can XRP Rebound From Key Support?
According to Coinglass, XRP faced **$6.37 million in futures liquidations** over the past 24 hours, with long positions accounting for $3.95 million and shorts $2.42 million. This suggests that leveraged bulls were caught off guard by the drop.
Key Levels to Watch
- Immediate Support: $1.96 – A break below this level could trigger further downside toward the lower boundary of the descending channel.
- Current Trading Range: $2.12–$2.24 – Price is consolidating near the 100-day EMA after being rejected there earlier this week.
- Resistance Zone: Upper trendline of the descending channel – A sustained close above this level is needed to reverse bearish momentum.
The Relative Strength Index (RSI) and Awesome Oscillator (AO) both remain below neutral levels, confirming ongoing bearish pressure across the 4-hour timeframe.
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However, if whales continue absorbing supply and macro sentiment improves, a bounce from the channel’s lower boundary remains a strong possibility.
Bullish Reversal Conditions
For XRP to shift into an uptrend, traders should watch for:
- A daily close above the descending channel resistance
- Rising volume on green candles
- RSI crossing back above 50
- Whale accumulation continuing or accelerating
Until then, the path of least resistance remains downward—but not without potential for sharp rebounds.
FAQ: Common Questions About XRP’s Current Market Phase
Q: Why are whales buying XRP while the price is falling?
A: Whales often buy during pullbacks to accumulate at lower prices. With strong fundamentals and growing institutional use cases, they may view this dip as a strategic entry point.
Q: What happens if XRP breaks below $1.96?
A: A breakdown below $1.96 could lead to a retest of the descending channel’s lower boundary, potentially around $1.70–$1.80 depending on market conditions.
Q: How does whale activity affect XRP’s price?
A: Large purchases reduce liquid supply and can create upward pressure when selling dries up. Sustained accumulation often precedes price increases.
Q: Is RLUSD gaining traction in traditional finance?
A: Yes. The integration of RLUSD with institutions like AMINA Bank AG and BDACS Korea signals growing acceptance in traditional financial systems.
Q: Should I sell XRP during this downturn?
A: Investment decisions should be based on personal risk tolerance and research. Many long-term holders view drawdowns as buying opportunities, especially when whales are accumulating.
Q: What indicators confirm whale buying?
A: On-chain metrics like Coin Age Consumption, SOPR, and large wallet inflows on exchanges (or lack thereof) help identify whale activity.
Final Thoughts: A Tale of Two Markets
The current XRP market reflects two contrasting narratives:
- Retail-driven selling: Short-term holders reacting to volatility
- Institutional-grade accumulation: Whales positioning for long-term growth
While technical indicators remain bearish in the short term, the underlying fundamentals—supported by strategic partnerships and rising stablecoin adoption—paint a more optimistic picture over time.
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As always, traders should exercise caution, manage risk appropriately, and avoid making impulsive decisions based on short-term price action.
Note: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile and may result in significant losses. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.