XRP Price Falls Despite Decline in Whale Activity on Binance

The Ripple token, XRP, is currently facing a price drop, even though activity from large holders, or “whales,” on Binance has slowed down.

Data from the XRP Ledger shows that transfers of large amounts of XRP to exchanges have fallen to levels not seen since 2021. CryptoQuant analyst Arab Chain noted that the Whale Transfer Flow, which tracks these big transfers, dipped to 48 million XRP before rising slightly to 56.1 million.

This metric is important because when whales move lots of tokens to exchanges, it usually signals that they are preparing to sell, which increases selling pressure and can push the price down. Conversely, low transfer activity indicates whales are holding their tokens, which can limit supply on exchanges and create a potential for future price increases.

In past instances, such as in 2021, low whale activity was followed by notable price rallies due to tighter supply and increased demand. Despite the reduced whale selling, XRP’s price has dropped to a three-day low, currently trading at $2.07, down 1.45% over the past 24 hours and 2.65% over the past week. However, it remains up roughly 7% over the past month.

This short-term decline is mainly due to the broader crypto market, which has fallen by 1.09% in the last 24 hours, bringing total market capitalization to $3.23 trillion. Major cryptocurrencies, including Bitcoin, Ethereum, and Solana, are also moving downward, reflecting an overall bearish trend across the market.

While whale activity is low and selling pressure is reduced, XRP is still experiencing a downtrend. This indicates that broader market conditions can have a stronger impact on prices than individual token dynamics. Analysts note that periods of low whale activity have historically led to price rallies, as limited supply on exchanges drives demand.

Although XRP is declining now, the reduced whale transfers could support a price rebound once the market stabilizes and the available supply on exchanges remains limited. This mix of factors suggests potential for future growth, even amid short-term losses.

XRP Price Bulls Defend $2.00 Support

XRP is trading near $2.05 on the 4-hour timeframe after pulling back from recent highs. The chart shows a clear shift from consolidation into a strong bullish breakout, followed by a corrective phase.

Earlier, XRP spent several days moving sideways inside a consolidation zone around $1.80–$1.90. Buyers defended this area strongly. Once the price broke above the consolidation range, momentum increased sharply, confirming a bullish breakout. This move pushed XRP toward the $2.40 resistance, where sellers stepped in aggressively.

After reaching that peak, XRP entered a corrective decline. Price pulled back in a controlled manner and formed a support zone around $2.00–$2.05. This level aligns with the previous breakout structure, making it an important area for buyers. The market is now testing this zone again, which suggests the correction may be losing strength.

XRPUSDT Chart Analysis. Source: Tradingview

A lower high formed near $2.20, marked as Resistance 1. This level is now the first upside barrier. A clean break above $2.20 could open the door for a move toward the major resistance near $2.40. Failure to reclaim $2.20 may keep the price ranging between $2.00 and $2.20.

The chart also hints at a bullish reversal setup. Price is holding above structural support, and selling pressure appears weaker compared to the previous drop. As long as XRP stays above the $2.00 support zone, bulls remain in control of the broader structure.

The RSI (14) is currently near 42, which is below the neutral 50 level but not oversold. This suggests bearish momentum is fading rather than accelerating. A move back above 50 would confirm renewed bullish strength.

Related Articles: