Despite the persistent weakness in the market, XRP whale accumulation reveals an interesting dynamic of capital redistribution on the blockchain. According to recent data from the analytics firm Santiment, the largest investors have absorbed a massive supply, acting as support while the price struggles to maintain its current level.
On-chain data indicates a significant changing of hands between different investor groups over the last four trading days. Mid-tier addresses, holding between 1 and 10 million tokens, offloaded 330 million XRP recently. This movement reflects clear skepticism among these participants regarding price action, who chose to reduce their exposure to the asset.
However, this selling pressure did not end up flooding exchanges or affecting smaller retail investors immediately. Conversely, larger wallets, with holdings of 10 to 100 million, absorbed these assets quickly. In fact, their holdings increased by 350 million tokens during the same period, representing a considerable wealth transfer into stronger hands.
The monetary value of this transfer amounts to over $729 million, underscoring the magnitude of the financial operation. Historically, when deep-pocketed investors buy during dips, they tend to act as market stabilizing forces. Therefore, this XRP whale accumulation suggests that “smart money” is confident in the asset’s recovery, even though general market sentiment remains cautious.
Is this massive purchase enough to reverse the current trend?
Unfortunately, the asset’s macroeconomic picture faces significant challenges due to the notable decline in network activity recently. According to Glassnode, active addresses have fallen to a three-month low, registering just 37,088 users interacting daily. This signals a lack of transactional interest or uncertainty about the immediate direction of the price, which could delay any significant bullish momentum in the short term.
The reduction in user participation directly affects the liquidity needed to sustain a lasting rally in the crypto market. With fewer users initiating operations, organic demand remains muted, making it difficult for the token to escape its current downtrend. Furthermore, this disconnection between low network activity and large institutional purchases could keep the price trapped in a sideways range for longer.
Will the XRP price be able to recover key resistance levels?
Currently, the asset is trading around $2.08, extending a downtrend that has lasted nearly a month. The price has oscillated within a narrow band between $2.20 and $2.02, showing difficulties in generating momentum. Therefore, consolidation seems to be the most likely scenario unless general conditions in the sector and related companies improve, allowing for an upward technical breakout.
If Ripple XRP whale accumulation manages to inspire confidence, a break above $2.20 could target $2.36. However, if bearish sentiment prevails and the $2.02 support is lost, the asset could fall below $2.00. Thus, investors must closely watch both capital flows and daily network activity to anticipate the next move.
