- XRP wallet activity spiked over 600%, with large investors increasing transactions, indicating major market shifts.
- Whale deposited 26.5M XRP into Binance after 2.3 years, earning 1.38M XRP in liquidity pools, signaling strategic accumulation.
- XRP consolidates between $1.90 and $3.50, with analysts eyeing $3.86 and $5.05 if resistance breaks; $1.50 is a key downside level.
XRP transactions have highly spiked, with daily transfers surpassing $5 billion. According to analyst Scott Melker, XRP wallet activity surged over 600%, indicating substantial market movements. Large investors, commonly known as whales, have also increased their activity, with many capitalizing on price fluctuations.
Whale Movements and Large-Scale Transactions
Notably, Onchain Lens reported a whale transaction involving 26.5 million XRP, valued at $67.65 million, deposited into Binance after 2.3 years. This whale initially accumulated 25.12 million XRP between April and November 2022 at an average price of $0.429.
The assets were then added to a liquidity pool with BNB, generating an additional 1.38 million XRP in earnings. This level of accumulation and liquidity movement suggests ongoing strategic positioning by high value investors.
Capital Flow Trends: Inflows and Outflows
XRP’s capital flow trends show notable shifts in investor behavior. From May to early November, persistent net outflows dominated the market, indicating strong selling pressure. The price remained below $1.00 during this period as investors withdrew funds rather than adding liquidity.
However, market dynamics changed between November and December, with XRP surging from under $1.00 to a peak of $3.87. This rally coincided with significant net inflows, indicating renewed confidence among investors.
Large green bars during this phase indicate a rise in capital injections, pushing XRP’s price higher. The trend shifted again in January, as heavy outflows resumed, leading to increased volatility.
Despite capital moving out, XRP’s price remained within the $2.00 to $3.00 range. This suggests that while selling pressure intensified, buying demand remained present, preventing a sharp decline. Analysts note that future price stability depends on whether inflows can counteract ongoing outflows.
XRP Price Consolidation and Future Levels
After a rapid rise from below $1.00 to above $3.50 in late 2024, XRP entered a consolidation phase. The asset has been trading within a range, fluctuating between $1.90 and $3.50.
This phase suggests accumulation, with buyers and sellers testing price boundaries. Key support is at $1.9085, a crucial level that could lead to a deeper correction if breached. Meanwhile, resistance is at $3.50, a potential breakout point.
Analyst Rose notes that Ripple has formed a descending channel pattern on the daily chart, indicating possible accumulation before the next upward move. A bounce from the $2.12 support level could push XRP toward price targets of $2.32, $2.61, $2.90, and $3.35.
If the price breaks the $3.50 barrier, upside targets extend to $3.86 and potentially $5.05 based on historical price patterns. However, failure to maintain support could result in a drop toward $1.50. Monitoring liquidity trends and market sentiment is essential to predict the next potential move.
