On March 2, XRP registered a massive rally of 34.15%. The price pump came after US President Donald Trump’s announcement that XRP (XRP) would be included in a US strategic crypto reserve alongside Solana (SOL) and Cardano (ADA).
However, the altcoin retraced 50% of its rally on March 3, and one analyst highlighted that XRP whales are potentially making a move behind the scenes.
XRP whales sell at record levels
With XRP currently 30% below its all-time high, CryptoQuant founder Ki-Young Ju implied that large XRP addresses are potentially cashing out. With the help of XRP’s volume bubble map he highlighted heightened activity between $2 and $3 over the past month.
While high-volume activity can also be synonymous with buyers, Young-Ju stated that the altcoin is currently in a distribution phase.
From a technical perspective, a “distribution phase” describes a stage in the market cycle where major investors gradually sell off their holdings to lock in profits, typically occurring near the height of an uptrend.
Likewise, Maartunn, a verified onchain analyst, confirmed that XRP is undergoing a distribution phase. With the help of whale flow analysis, the analyst identified that negative whale flows calculated with a 30-day moving average (30-DMA) reached an all-time low level. The analyst added,
“This metric shows the Whale Flow. They are offloading $XRP like never seen before”
Meanwhile, the XRP exchange reserves on Binance also registered a sharp increase from 2.72 billion to 2.90 billion tokens. A rise in exchange reserves indicates higher selling pressure, which aligns with the above development of XRP’s distribution phase.
Related: XRP price to $18K? — One crypto ‘research’ group says it’s possible
XRP is in trouble under $2.50, says analyst
Despite the recent rally, Dom, an XRP market analyst, stated that the altcoin failed to hold an all-time high value of the volume-weighted average price (VWAP) of $2.70.
In order for the trend to sustain any future rally, it is important for the altcoin to hold a position above the $2.50 range.
However, Dami DeFi, a crypto investor believed that XRP’s high time frame (HTF) chart indicates higher high consolidation below key resistance and ascending trendline. The investor added,
“With Trump backing $XRP for the U.S. reserve, once it flips this level, It’s game on for price discovery.”
On the contrary, Matt C, a cybersecurity engineer and Bitcoin proponent, dismissed XRP’s bullish behavior and identified the formation of an inverse head and shoulder for the altcoin. With the relative strength index (RSI) forming lower highs in XRP’s 1-day chart, the Bitcoin enthusiast believed that the altcoin’s current surge is “exit liquidity” for the masses.
Related: Bitcoin returns under $90K as crypto market liquidates $150M in hours
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
