Decoding the Recent Decline in XRP Values: Are Ripple Whales Influencing the Shift Under $2.5?

Ripple (XRP) has recently seen a swift downturn in price, dropping below $2.5 just after a brief recovery above $1.90, now trading around $2.4.

The recent shifts in price appear closely linked to a significant uptick in whale activity, particularly on Binance, where deposits surged in numbers, indicating potential profit-taking and panic selling.

Whale Activity and Market Response

The Whale to Exchange Flow metrics for Binance—provided by CryptoQuant—indicate a substantial increase in whale deposits starting from October 1st, peaking on October 11th at 43,000 transactions, a clear signal of large-scale XRP transfers to exchanges. This kind of movement often signals that whales are preparing to liquidate holdings or adjust their positions amidst market uncertainty.

With the surge in whale transactions, XRP’s value has notably declined, dropping from above $3 to around $2.3, solidifying the connection between these inflows and mounting selling pressure during the initial half of October.

However, whales weren’t the only ones contributing to the downward pressure. Smaller investors were also active, with a marked increase in XRP transfers to Binance in the ~1,000 XRP tier, alongside occasional larger transactions of 100K and 1M XRP. This increase shows a wider distribution in the market, potentially indicating retail investors fragmenting larger positions to minimize risk before selling.

Retail Sentiment and Market Outlook

Attention is now turning to smaller traders and their reactions to XRP’s volatility. Insights from Santiment suggest a prevalent atmosphere of pessimism among retail traders, with many selling at losses due to fear, uncertainty, and doubt (FUD) proliferating on social media. Historically, such sentiments have often heralded market reversals, indicating that stronger investors might start accumulating XRP.