Photo: Alexandru Nika / Shutterstock.com
XRP is on edge after a massive outflow of tokens from crypto exchanges. In just two months, 1.35 billion XRP was moved to external wallets. Such large shifts are typically caused by whales—large investors looking to secure their holdings or strategically reposition them. This is often done when investors plan to hold their coins for the long term and have no intention of selling soon.
Whales Move Massive Amounts of XRP #
According to data from ChartNerd, the total XRP supply on exchanges has dropped from 3.95 billion to approximately 2.6 billion tokens. This marks a 45% decrease in less than two months. When such quantities disappear from exchanges, it often indicates long-term storage in cold wallets, reducing the likelihood of immediate sales and temporarily easing selling pressure.
Additionally, on-chain data reveals rising activity on the XRP network. The amount of XRP transferred between wallets has increased sharply in recent weeks. In one week alone, over 510 million XRP were shifted between large wallets, which analysts interpret as a redistribution within the market.
Technically, the market remains in wait-and-see mode. Analyst Ali Martinez notes that XRP is forming within a symmetrical triangle, a pattern that often precedes a powerful breakout. According to him, a breakout above the upper trendline could lead to a move toward $2.40–$2.45. Conversely, a downward breakout could trigger a drop toward $1.80, with $1.94 being the key level to hold.
Trading Activity Reaches Yearly Record #
Beyond the token outflow, another notable development is visible: trading activity within the XRP network hit a new yearly record in early December. The so-called Velocity indicator, which measures how frequently tokens change hands, rose to its highest level this year. This shows that XRP is changing hands rapidly, despite uncertain market conditions.
What these developments primarily show is that the XRP market is in full swing. Large investors are pulling enormous amounts from exchanges, while activity within the network is increasing. Whether this ultimately leads to a major rise or a decline remains unclear. What is clear, however, is that XRP is in a critical phase, where every new move by whales or traders can have a significant impact in the coming period.