XRP Dips Further as Short-Term Holders Cash Out, Whales Accumulate

·

Ripple’s XRP dropped 4% on Thursday, struggling near the $2.12 support level. Amid the broader crypto market downturn, a clear shift in holder behavior has emerged: short-term investors are exiting positions, while large holders—commonly known as "whales"—are stepping in to accumulate.

This divergence in market sentiment highlights a classic pattern during volatility: panic selling from newer investors and strategic buying from deep-pocketed players. Understanding these dynamics offers valuable insight into XRP’s potential next move.

Short-Term Holders Lead the Sell-Off

Recent data shows that short-term XRP holders have dominated selling activity following the latest market correction.

The Spend Age Distribution metric, provided by on-chain analytics platform Santiment, reveals the age of coins being spent each day. For XRP, spikes in spending are concentrated in two key cohorts: tokens held between 1 to 7 days and those held between 90 to 180 days.

👉 Discover how whale movements can signal the next major market shift.

This suggests two distinct behaviors:

Further confirmation comes from the Net Unrealized Profit/Loss (NUPL) metric for the XRP network. It indicates that investors who bought within the past week are currently underwater, while those holding for 3–6 months are still in profit—and actively realizing gains.

Such profit-taking is natural after a rally, especially when uncertainty rises. However, someone must absorb this supply—and the data shows who that is.

Whales Step In With Over $1 Billion in Accumulation

While smaller investors exit, XRP whales are seizing the opportunity.

Since Monday’s market dip, large addresses holding between 1 million and 10 million XRP, and especially those with 10 million to 100 million XRP, have collectively added 440 million XRP—worth nearly $1 billion at current prices.

This accumulation is reflected in the Supply Distribution chart, which tracks how XRP is distributed across wallet sizes. The uptick in balances among top-tier wallets signals strong confidence among institutional-grade investors and long-term believers in Ripple’s ecosystem.

Whale buying during downturns often precedes consolidation or reversal phases. Their ability to absorb sell pressure may cushion further declines and lay the foundation for a future rally—especially if macro conditions stabilize.

Strategic Expansion in South Korea Boosts Institutional Confidence

Amid market turbulence, Ripple continues to strengthen its real-world infrastructure.

On Wednesday, the company announced a new partnership with BDACS Korea, a licensed digital asset custodian, to expand institutional custody services in South Korea. The platform will use Ripple Custody to securely store clients’ XRP and RLUSD, Ripple’s U.S. dollar-pegged stablecoin.

This collaboration aims to:

South Korea is one of the largest geographic markets for XRP trading volume. By deepening its local presence through trusted custodianship and developer support, Ripple reinforces XRP’s utility beyond speculation—bolstering long-term value fundamentals.

👉 See how top cryptocurrencies are being adopted by financial institutions worldwide.

Technical Outlook: Can XRP Bounce From Key Support?

According to Coinglass, XRP saw **$6.37 million in futures liquidations** over the past 24 hours, with long positions accounting for $3.95 million and shorts for $2.42 million. This suggests leveraged bulls were hit hardest, adding downward momentum.

On the 4-hour chart, XRP has been trading near the lower end of a descending channel that has defined its trajectory since mid-January. After being rejected at the 100-day exponential moving average (EMA), price action has consolidated between $2.24 and $2.12.

Key Levels to Watch

Indicators remain bearish in the short term:

Until these indicators cross into neutral or positive territory, caution remains warranted.

Frequently Asked Questions (FAQ)

Q: Why are short-term holders selling XRP now?
A: Many bought during recent price increases and are either cutting losses or securing profits amid market uncertainty. This is common during pullbacks after rapid rallies.

Q: What does whale accumulation mean for XRP’s price?
A: Large-scale buying by whales often signals long-term confidence. It can absorb selling pressure and set the stage for future price stabilization or growth once volatility subsides.

Q: Is XRP still part of a downtrend?
A: Yes—XRP remains within a descending channel on the 4-hour chart since January. A breakout above the upper trendline is needed to confirm a reversal.

Q: How important is Ripple’s partnership in South Korea?
A: Very. South Korea is a major XRP market. Strengthening custody and developer support there enhances institutional trust and real-world utility for both XRP and RLUSD.

Q: Could RLUSD become a major stablecoin?
A: With growing institutional interest and banking partnerships—like AMINA Bank AG adopting RLUSD—its role in bridging traditional finance and blockchain is expanding rapidly.

Q: Where can I track whale movements and on-chain data?
A: Platforms like Santiment, Glassnode, and CryptoQuant offer real-time insights into wallet activity, supply distribution, and investor behavior across major cryptocurrencies.

Core Keywords:

👉 Stay ahead of market moves with real-time data and advanced trading tools.