The XRP market is under scrutiny after whale wallets transferred over $130 million worth of the cryptocurrency to Coinbase within just one week. While the immediate impact on price has been minimal, the move has sparked speculation about potential selling pressure and whether a correction could be on the horizon.
Major Whale Movements Signal Possible Selling Intent
On-chain data reveals two significant transfers of XRP to Coinbase in early May. The first occurred on May 3, when a wallet deposited 29.53 million XRP—valued at approximately $64.4 million**—onto the exchange. Just six days later, on May 9, an identical amount of **29.53 million XRP** was sent again, this time worth **$69.5 million due to price appreciation.
👉 See how large crypto movements can influence market trends and investor behavior.
Combined, these transactions total 59.06 million XRP, equivalent to about $133.9 million, all funneled into a major centralized exchange. Historically, such large inflows from non-custodial wallets are often interpreted as precursors to selling activity, as exchanges serve as primary gateways for converting digital assets into fiat or other cryptocurrencies.
Whale Alert, the blockchain monitoring platform that first reported the transfers, did not identify the source wallets—leaving analysts to speculate on the motives behind the moves. However, the timing suggests profit-taking amid a recent rally in XRP’s price.
XRP’s Recent Price Momentum and Technical Outlook
XRP had been consolidating around the $2.00 mark for several weeks before breaking higher in early May. This breakout aligned with broader bullish sentiment across the crypto market and triggered technical buy signals observed by traders.
Ali Martinez, a well-known crypto analyst, highlighted on May 10 that XRP flashed a bullish reversal signal after surpassing the $2.35 resistance zone**. This development suggested potential momentum toward testing the psychologically important **$2.50 resistance level, a key target for many investors.
As of the latest data, XRP is trading at $2.40, reflecting a 0.5% gain in the past 24 hours and a 9% increase over the past week. Despite the whale dumps, the price remains resilient, supported by strong technical indicators.
Key Technical Indicators at a Glance
- Moving Averages: XRP is currently trading above both the 50-day and 200-day simple moving averages (SMA), which sit near $1.90. This golden crossover pattern is widely viewed as a bullish confirmation.
- Relative Strength Index (RSI): The 14-day RSI stands at 62.97, indicating that XRP is approaching overbought territory but has not yet entered it.
- Volatility: With a volatility rate of 3.67%, price swings remain moderate, suggesting relative market stability despite large transactions.
These metrics collectively point to sustained bullish momentum, though traders remain cautious given the increased exchange supply.
On-Chain Activity and Market Fundamentals
Beyond whale movements, broader on-chain activity presents a mixed but generally positive picture for XRP.
Earlier in May, Ripple unlocked 1 billion XRP as part of its regular monthly release from escrow. While such events can sometimes trigger sell-offs, this time the market absorbed the supply without significant downside pressure.
In fact, over the past month, whales have been accumulating rather than distributing—purchasing roughly $1.8 billion worth of XRP, according to on-chain analytics. This accumulation suggests long-term confidence in the asset's value despite short-term volatility.
👉 Discover how smart money flows shape cryptocurrency markets before major moves happen.
The contrast between recent selling pressure on Coinbase and ongoing accumulation elsewhere highlights a fragmented market sentiment—some investors are locking in gains, while others are positioning for future growth.
The SEC-Ripple Legal Case: A Catalyst on the Horizon
One of the most critical factors influencing XRP’s price trajectory is the ongoing resolution of the SEC vs. Ripple lawsuit. After years of legal battles, the U.S. Securities and Exchange Commission has officially filed a settlement agreement in court—a development that could redefine XRP’s regulatory status in the United States.
Market participants are closely watching for any official statements or rulings that may clarify whether XRP will be classified as a security or commodity. A favorable outcome could unlock institutional investment and boost exchange listings, while ambiguity could prolong uncertainty.
This legal clarity is expected to act as a major catalyst, potentially overriding short-term technical noise—including whale dumps—by reshaping long-term demand fundamentals.
FAQ: Addressing Common Investor Concerns
Q: Does moving XRP to Coinbase always mean selling?
A: Not necessarily. While large deposits often precede sales, they can also be used for staking, lending, or future trading strategies. However, combined with price highs, such moves are typically seen as bearish signals.
Q: Can XRP still reach $2.50 despite these whale dumps?
A: Yes. Current technical indicators support upward momentum, and if buying pressure continues, $2.50 remains an achievable near-term target—provided no major negative news emerges.
Q: How do whale movements affect small investors?
A: Whales can influence short-term volatility, but long-term trends depend more on adoption, regulation, and macroeconomic factors. Small investors should focus on fundamentals rather than isolated transactions.
Q: What happens if the SEC settlement is unfavorable?
A: A negative ruling could lead to delistings from U.S.-based exchanges and reduced liquidity, likely causing a sharp price decline. However, much of this risk may already be priced in.
Q: Is now a good time to buy or sell XRP?
A: With RSI nearing overbought levels and whales active on exchanges, short-term caution is warranted. However, strong moving averages and positive sentiment suggest longer-term upside potential.
Final Thoughts: Caution Amid Bullish Signals
The dual $69 million transfers to Coinbase undeniably raise concerns about short-term selling pressure. Yet, when viewed alongside technical strength, whale accumulation trends, and upcoming regulatory clarity, the overall picture remains cautiously optimistic.
Investors should monitor exchange inflows closely while keeping an eye on broader market dynamics and the final developments in the SEC-Ripple case.
👉 Stay ahead of market-moving events with real-time data and advanced trading tools.
While a pullback is possible after recent gains, there’s no definitive evidence yet of an imminent crash. For now, XRP continues to demonstrate resilience—a trait that has defined its journey through both legal challenges and market cycles.
Core Keywords: XRP, Coinbase, whale transactions, SEC-Ripple lawsuit, price analysis, cryptocurrency exchange, on-chain data