Fourth-ranked cryptocurrency by market capitalization, XRP has registered a spike in the number of large transactions in the last 48 hours. As per renowned on-chain analyst, Ali Martinez, XRP whales have dumped approximately 200 million XRP on the market.
This signals increased activity but on the sell side of the market, a development that short-term holders have shrugged off despite its bearish outlook.
XRP Whales' Selloff Triggers Market Concerns
Notably, dumping 200 million XRP valued at about $448 million on the market could suggest a massive drop in confidence among large holder investors. On-chain data shows this significant volume of transactions was performed by 716 whales. Each of the large holders moved over $1 million, which is a new peak in the last four months.
The implication of this development is that XRP whales are signaling reduced confidence, hence the move to reduce exposure to the asset. Some market participants believe that whales are anticipating further corrections in the price of XRP.
In the interim, the coin is still trading above the $2.20 support level and looks likely to climb if the whale action does not trigger a market-wide selloff.
Retail Traders Watch XRP’s Critical Support Zone
XRP dipped from a daily high of $2.28 to a low of $2.20 within the last 24 hours. As of this writing, XRP has gained slightly and exchanges for $2.23, which represents 0.74% within the period. The asset’s trading volume has also dropped significantly by 37.48% to $3.04 billion.
The overall market figures reflect reaction to the whale-driven liquidity shocks and concerns from market participants about the future outlook for XRP. It appears traders and investors alike are monitoring whale wallet flows to decide if XRP could post a rally in the coming days.
If the asset’s $2.20 support holds, retail investors might rekindle interest in the asset and engage. However, a further dip to the $2.10 support could spark selloff concerns in the XRP community.
Short-Term Holders Increase Accumulation Despite Volatility
Interestingly, amid this uncertainty, short-term holders have increased their supply share. These holders took advantage of the price dip to accumulate the coin. This suggests that a segment of the market is hoping for price recovery soon.
Data indicate that these short-term holders have only bought XRP within the last one week and three months. This indicates that new capital is entering the market despite the volatility, a development that could catalyze XRP’s stability.