Key takeaways:
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Over 21,000 new XRP wallets were created in 48 hours, the fastest growth in eight months.
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Record decentralized exchange transactions coincided with XRP’s price weakness, hinting at non-organic activity.
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Whale wallet outflows have stabilized after $650 million in selling, suggesting a potential bottom formation for XRP.
XRP (XRP) closed Tuesday’s daily candle at $2.20, its lowest level since July 4, before rebounding by 16% to $2.40 from the monthly lows of $2.06 on Thursday. Despite the relief rally, the altcoin continued to struggle to regain bullish dominance, as broader sentiment remains cautious.
However, onchain data pointed to renewed activity across the XRP Ledger. Analytics platform Santiment noted a sharp increase in XRP network participation, with over 21,000 new wallets created in just 48 hours, the highest growth rate in eight months.
Likewise, data from CryptoQuant reported record-breaking activity on the XRP Ledger’s native decentralized exchange (DEX), with 954,000 transactions marking the most active day in recent months.
Such a spike typically signals improved network health and adoption, but this time, it coincided with a notable price decline, a divergence that raised questions about the underlying drivers of the activity.
Analysts suggest that this disconnect may indicate that a significant portion of the transaction volume originates from whale distribution, arbitrage or automated trading, rather than organic buying.
Related: XRP gets legal recognition as property in India: Why this court ruling matters
XRP whale flow hints at price stability
XRP’s price has been in a sustained downtrend since peaking at $3.66 on July 18, a period marked by persistent whale selling. Over the past 90 days, XRP recorded negative whale flows exceeding $650 million, reflecting consistent large-scale outflows.
However, recent data indicates that this trend may be reversing, as total whale flows for the 90-day period have turned neutral, potentially signaling early signs of a market bottom.
Crypto analyst Crazzyblockk noted that futures data on Binance also displayed a stark contrast between XRP and major cryptocurrencies. While Bitcoin and Ether futures saw significant open interest decline to $59.87 million and $148.69 million, respectively, while XRP’s futures positioning remained comparatively resilient.
“Traders appear to be rotating into XRP,” the analyst said, “using minor dips to accumulate positions, in stark contrast to the risk-off sentiment dominating BTC and ETH markets.”
With whale selling easing and new wallet creation accelerating, XRP’s onchain and derivatives data hint at a possible stabilization phase, though confirmation from price action remains key.
Related: XRP price flashes classic ‘hidden bullish divergence.’ Is $5 still in play?
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.
