Knowledge from CryptoQuant reveals main XRP holders used its current rallies to exit their positions at greater costs.
The worth of Ripple’s native XRP token has struggled to recuperate regardless of file community exercise and robust institutional curiosity, slipping 10.7% up to now week to $2.30, in response to CoinGecko.
The drop has come even with Ripple increasing its monetary infrastructure attain and merchants on Binance rotating into the token, suggesting there’s a rising divide between bullish fundamentals and short-term market conduct.
This contradiction has left many traders puzzled: why does XRP maintain falling when the information seems to be optimistic? Now, a November 5 evaluation by CryptoQuant market technician CryptoOnchain claims to have the reply, attributing XRP’s current weak point to massive holders shifting their funds to exchanges, which he considers a basic “promote the information” setup.
Whale Promoting Meets Market Headwinds
In an in depth report, CryptoOnchain broke down what he calls “The XRP Paradox.” Their evaluation confirmed that from late 2024 by way of 2025, whale-to-exchange flows on the XRP Ledger (XRPL), notably into Binance, rose sharply, signaling that main holders had been getting ready to promote lengthy earlier than the current downturn.
Based on the analyst, this constant rise in whale deposits represents a basic bearish sign. They famous that the 100-day easy shifting common (SMA) of those transfers additionally hit file highs round Ripple’s newest capital injection, confirming that this was a deliberate distribution section somewhat than panic promoting, with the big traders utilizing the rally to exit at greater costs.
“The funding announcement created the proper exit liquidity,” CryptoOnchain wrote. “Whales used retail hype to dump their pre-positioned provide.”
The promoting stress that adopted was immense, overwhelming demand, and driving XRP down even because the broader ecosystem confirmed robust development.
Including to the pressure was the timing. The distribution coincided with Bitcoin’s steep drop under $100,000 and Ethereum’s slide below $3,200 earlier this week, wiping out over $1.7 billion in leveraged positions in a single day. XRP was not spared both; it broke under $2.40 and fell towards $2.09 earlier than stabilizing.
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Robust Fundamentals however Brief-Time period Stress
Regardless of the bearish setup, CryptoOnchain’s analysis concluded that Ripple’s fundamentals are nonetheless robust. Current acquisitions, together with crypto custody agency Palisade and a collaboration with GTreasury, level to deeper integration with conventional finance.
Moreover, a number of companies, together with Franklin Templeton and Bitwise, have additionally updated their filings for a spot XRP ETF, with potential launches anticipated later this month.
“Within the short-term, XRP’s value will stay suppressed till the whale promoting stress subsides,” famous the analyst. “Nonetheless, this occasion doesn’t negate Ripple’s robust long-term fundamentals supported by its new capital injection.”
Technically, merchants have identified $1.94 as a key help zone for XRP. EGRAG CRYPTO famous that the asset stays in an “accumulation vary,” suggesting affected person traders may benefit if the market stabilizes. However for now, whale exercise and a shaky macro backdrop are retaining the lid on costs.
The token has dropped almost 22% over the previous month, underperforming the broader market’s 5% decline. Regardless of this, it stays up greater than 330% year-over-year, with consultants pointing to that as proof that its long-term momentum continues to be intact.
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