XRP whales increase Binance inflows, signaling a bearish trend that may drag price down | Credit: Hameem Sarwar
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Key Takeaways
Large XRP transactions to Binance have surged from 631 to 1,683, hinting at potential sell-offs.
A drop in active addresses reveals weakening network participation and growing bearish momentum.
XRP’s recent price action has formed a rising wedge, typically a precursor to a price breakdown.
For the past seven days, XRP’s price has been wobbling between a tight trading range, moving between $2.15 and $2.34. This consolidation phase has kept traders on the sidelines, with many waiting to see what could be next for the altcoin.
But as retail investors are hesitating, XRP whales are taking drastic action that could be detrimental to the price.
In this analysis, CCN examines what these key stakeholders are doing and what it might mean for XRP’s price.
Whale Inflow Surges 166%
Between April 28 and 30, CryptoQuant data shows that XRP whales’ transactions to Binance dropped from 2,075 to just 631. This decline coincided with a price increase from $2.18 to $2.32, suggesting reduced selling pressure.
However, today, the number of large transfers has climbed to 1,683. Typically, when whales withdraw assets from exchanges, it signals a reluctance to sell—a bullish sign.
In contrast, rising deposits to exchanges like Binance hint at potential sell-offs. Thus, these recent inflows suggest that whales may be preparing to liquidate some of their holdings.
While this could boost market liquidity, it also raises the risk of increased selling pressure. If the trend continues, XRP’s price may struggle to hold above $2, increasing the likelihood of a pullback.
XRP Whale to Exchange Transactions | Credit: CryptoQuant
Network Activity Drops
Furthermore, XRP’s 24-hour active address count also supports the bearish outlook. This metric tracks the number of unique wallet addresses involved in sending or receiving XRP within a given time frame.
When active addresses rise alongside price, it typically signals strong network engagement and a bullish trend.
However, this metric has dropped in line with the recent sell-offs of XRP whales, indicating weakening on-chain activity.
If this decline in network participation persists, XRP’s price could face additional downward pressure in the short term.
An evaluation of the XRP/USD daily chart also aligns with this basis. According to the image below, XRP formed an ascending channel earlier, which seems to have ended up in a rising wedge.
A rising wedge is a bearish pattern that signals a potential breakdown. It forms when the price makes higher highs and higher lows, but the slope of the lows is steeper than the highs, meaning momentum is weakening amid the price compression.
Beyond that, the Chaikin Money Flow (CMF) has dropped below the zero signal line, aligning with the selling pressure by XRP whales.
Should this trend remain the same, XRP’s price might drop below support at $1.95. If validated, the altcoin’s next target might be a decline to $1.60.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
