Whales sell off XRP as the number of new wallets reaches the highest level in 8 months.

XRP closed the trading session on Tuesday at a price of $2.20 – the lowest since July 4th. However, just within a few days, it bounced back 16%, reaching $2.40, after bottoming out at $2.06 on Thursday. Nevertheless, this recovery is still not strong enough to help XRP regain a sustainable bullish position, as the overall market sentiment remains cautious.

XRP one-day chart | Source: TradingViewContrary to the price trend, on-chain data shows notable activity on the XRP Ledger. According to the analytics platform Santiment, the number of new wallets on the XRP network has skyrocketed, with over 21,000 wallets created in just 48 hours – the fastest growth rate in the last eight months.

At the same time, data from CryptoQuant also shows that trading activity on the decentralized exchange (DEX) of the XRP Ledger reached a new record, with 954,000 transactions occurring in a single day – the highest number in recent months.

Typically, a strong increase in network activity will be a positive signal for the health and level of acceptance of the ecosystem. However, this time, this surge coincided with a bearish trend, creating a notable difference and leading analysts to raise various questions about the true motivation behind it.

Transaction volume on XRP Ledger DEX | Source: CryptoQuantMany experts believe that a large portion of the current trading volume may stem from the distribution activities of whales, arbitrage trading, or automated algorithms, rather than actual buy demand from the market.

The flow of XRP whales indicates price stability

Since reaching a peak of $3.66 on July 18, the price of XRP has continuously declined under strong selling pressure from whales. In the past 90 days, the total whale outflow has exceeded $650 million, reflecting a trend of large-scale capital withdrawal.

However, the latest data shows signs of a reversal: whale money flow over the past 90 days has returned to a neutral state, raising hopes for a market bottom out in the near future.

The 90-day moving average of XRP whale flow | Source: CryptoQuantAnalyst Crazzyblockk also points out that futures contract data on Binance is showing a clear divergence between XRP and major coins like Bitcoin and Ethereum. While the open interest of BTC and ETH futures contracts has sharply decreased to $59.87 million and $148.69 million respectively, the futures position of XRP remains relatively stable.

“Traders seem to be shifting towards XRP,” Crazzyblockk commented, “they are taking advantage of small corrections to accumulate positions, completely contrasting with the risk-off trend dominating the BTC and ETH markets.”

With the selling pressure from whales easing and the number of new wallets increasing sharply, on-chain data along with the derivatives market of XRP are signaling the potential to enter a stable phase. However, the final confirmation will still depend on price movements in the coming time.

Mr. Giao