“When large holders move XRP to exchanges, prices feel the weight.”
The XRP price has slipped below the important $2 mark, startling many investors who had anticipated a surge following the introduction of XRP exchange-traded funds (ETFs).
However, despite this encouraging improvement, the price still struggles, according to fresh data from on-chain analytics platform CryptoQuant.
The primary cause of the price decline, according to a CryptoQuant study by analyst PelinayPA, is strong selling pressure from big XRP holders, also referred to as whales.
The majority of the XRP inflows into the Binance exchange come from these whales, who possess between 100,000 and over a million XRP.
Large volumes of XRP moving to exchanges frequently indicate a plan to sell. Every significant increase in XRP inflows is followed by lower highs and lower lows, according to CryptoQuant.
This indicates that supply is now outpacing demand and driving down prices.
Strong fresh spot buyers are scarce in the market, according to the research. The consistent rise in accessible supply is sufficient to keep the price under pressure even while whales are not actively selling XRP.
Key levels to monitor were found by CryptoQuant. The first significant support zone, where some purchasing activity was previously observed, is between $1.82 and $1.87. XRP may drop further towards the $1.66 to $1.50 area if selling continues.
It’s interesting to note that the report implies whales exploited the story around ETF approval.
Early XRP accumulators utilised the news to sell their holdings to regular investors, despite the expectation that ETFs would generate institutional demand.
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