XRP Whales Are Actively Selling Amid Rising Network Activity

The recent surge in XRP network activity appears to be large-scale holders distributing their stash rather than accumulating, according to analysis.

A recent report from The Crypto Basic confirmed that active XRP addresses have surged 36% in the past two weeks. The number of daily users on the XRP Ledger moved from 27,205 to 37,202 addresses, suggesting growing network adoption.

However, while this appears bullish, recent analysis tells a different story. Rather than a positive signal, there could be a bearish development beyond the surface.

XRP Whales’ Sales Behind Network Spike

An analysis from Ali Martinez suggests that the spike in active addresses could be whales actively distributing their holdings. According to him, the increased activity came from large holders moving their funds to exchanges for possible sales.

He highlighted a previous tweet showing that whales distributed over 30 million XRP tokens during the period when the network activity spiked. This supports the narrative that the active addresses were likely whales reactivating to sell amid the persistent price downside.

However, several on-chain data points conflict with this. Coinglass XRP spot flows show that over the past 15 days, more coins have left exchanges than flowed in. Outflows stood at $1.43 billion and inflows at $1.35 billion, culminating in a net of $74 million withdrawn within the period.

Additionally, exchange reserves seem to be dropping too. On Binance, XRP’s reserve dropped to a 4-month low, showing that holders are moving their stash off exchanges. Recent data indicates that whales are responsible for most of the transfers, another bullish indicator.

XRP Gearing Up for a Decisive Move

Over the past few days, several indicators have been pointing to an impending price move in the XRP price. On Monday, The Crypto Basic highlighted a combination of the TD Sequential, falling channel, and morning star Doji as indications of an imminent rebound.

However, prices have not been moving in one direction lately. After a 1% increase yesterday appeared to be setting an uptrend in motion, XRP has dropped 1.40% so far today, relinquishing all of its gains yesterday.

Around the current price of $1.04 are two critical levels ahead. If a short-term rebound occurs, XRP could target the resistance at $1.27 and $1.35, where large amounts of tokens were moved according to URPD data.

On the contrary, losing the $1 support opens the path for a deeper correction to $0.80 and $0.62, where 923 million XRP and 1.16 billion XRP changed hands, respectively.