Key takeaways:
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Over 21,000 new XRP wallets were created in 48 hours, the fastest growth in eight months.
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Record decentralized exchange transactions coincided with XRP’s price weakness, hinting at non-organic activity.
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Whale wallet outflows have stabilized after $650 million in selling, suggesting a potential bottom formation for XRP.
XRP (XRP) closed Tuesday’s daily candle at $2.20, its lowest level since July 4, before rebounding by 16% to $2.40 from the monthly lows of $2.06 on Thursday. Despite the relief rally, the altcoin continued to struggle to regain bullish dominance, as broader sentiment remains cautious.
XRP one-day chart. Source: Cointelegraph/TradingView
However, onchain data pointed to renewed activity across the XRP Ledger. Analytics platform Santiment noted a sharp increase in XRP network participation, with over 21,000 new wallets created in just 48 hours, the highest growth rate in eight months.
Likewise, data from CryptoQuant reported record-breaking activity on the XRP Ledger’s native decentralized exchange (DEX), with 954,000 transactions marking the most active day in recent months.
Such a spike typically signals improved network health and adoption, but this time, it coincided with a notable price decline, a divergence that raised questions about the underlying drivers of the activity.
XRP Ledger DEX transaction count. Source: CryptoQuant
Analysts suggest that this disconnect may indicate that a significant portion of the transaction volume originates from whale distribution, arbitrage or automated trading, rather than organic buying.
Related: XRP gets legal recognition as property in India: Why this court ruling matters
XRP whale flow hints at price stability
XRP’s price has been in a sustained downtrend since peaking at $3.66 on July 18, a period marked by persistent whale selling. Over the past 90 days, XRP recorded negative whale flows exceeding $650 million, reflecting consistent large-scale outflows.
However, recent data indicates that this trend may be reversing, as total whale flows for the 90-day period have turned neutral, potentially signaling early signs of a market bottom.
XRP Whale Flow 90-day moving average. Source: CryptoQuant
Crypto analyst Crazzyblockk noted that futures data on Binance also displayed a stark contrast between XRP and major cryptocurrencies. While Bitcoin and Ether futures saw significant open interest decline to $59.87 million and $148.69 million, respectively, while XRP’s futures positioning remained comparatively resilient.
“Traders appear to be rotating into XRP,” the analyst said, “using minor dips to accumulate positions, in stark contrast to the risk-off sentiment dominating BTC and ETH markets.”
With whale selling easing and new wallet creation accelerating, XRP’s onchain and derivatives data hint at a possible stabilization phase, though confirmation from price action remains key.
Related: XRP price flashes classic ‘hidden bullish divergence.’ Is $5 still in play?
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
