Today, a peculiar event occurring on the blockchain somewhat scrambled the XRP community. An enormous amount of XRP, 73 million to be exact, was transferred between five unidentified wallets during an hour-long span. Throughout this operation, the total of the transfer remained unchanged. The tokens that were transferred during the operation had a market value of approximately $151.3 million.
Leonidas Hadjiloizou, a researcher, humorously commented that the tokens were being passed around like a hot potato and nobody wanted to hold them as if that was the case.
Nevertheless, the conduct unveils other aspects. A non-segmented, large-scale movement of the specified amount would usually indicate internal routing, which is the case with the drawing of a single large participant likely being an exchange or a custodian transferring liquidity or securing assets. As of the writing, the price of XRP is about $2.07, unchanged in spite of the commotion.
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XRP has a smoother and quieter looking appearance on the charts than it has had for the past few months. The asset has undergone a lengthy process of correction and has come out of it completely, as there was a complete flush of excess leverage. The price movement went through the channel with a downward slope and then rested close to the areas where reactions have been initiated before.
These resets are important. In overheated situations, the first thing that happens is markets don’t go up & the second is they simply stop. Volatility tends to be less. Slowly demand comes back. XRP has just started to indicate this process. The market is not showing any longer the signs of panic or forced selling.
This opinion is backed by the momentum indicators. At the moment, RSI is in the neutral-to-bullish zone after bouncing back from the oversold level. It means buyers are coming in with caution rather than loudness. In the past, rallies used to run out of power quickly due to speculation. This one has the characteristics of being a slow and steady one.
The selling pressure, on the other hand, seems to be less heavy. The prices have been going down but the movements are not as strong as before. The attempts to break down are not convincing and do not produce any further decline. This shift in behaviour is significant for an asset like XRP, which has remained behind the broader market leaders for quite some time now.
There can be a breathtaking shift in the market when a change in sentiment occurs, and in that case, even the slowest movers are able to react quickly. The whole process of capital change is characterized by suddenness. After a period of uncertainty, it is only the traders who had been waiting on the sidelines that come rushing in. Such interaction might cause the price to rise more than anticipated.
However, nothing is still secure. Long-term moving averages and previous distribution areas still are a resistance. XRP will have to do it in a very clean way with a strong volume behind it to open the door to continuous upside. If not, the price may be stuck between the same levels for a while longer.
Nonetheless, the configuration has changed. The bulls are for the first time in months getting the upper hand in Ripple’s architecture. In case the strength does not wane and the resistance surrenders, the following movement can be a lot more than a mere bounce.
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