Data on XRP flows indicate decreasing activity among large holders, potentially foreshadowing significant price corrections. This article explores current trends and their possible implications.
Technical Pressure and Whale Exodus
According to data from CryptoQuant, XRP's 90-day moving average whale flow has sharply decreased, indicating sustained outflows from major wallets. Analyst The Enigma Trader warned that the absence of positive flows may keep the market structurally weak. This behavior resembles trends observed early this year, when a local price peak was followed by a correction.
Sideways Drift or Deeper Correction?
As of this writing, XRP is trading at $3.30, up 10.8% in 24 hours. Nevertheless, the monthly chart shows a strong 42% gain, largely driven by July's breakout. However, the token is now down over 15% from its all-time high recorded during this period. Despite the bearish whale signals, some catalysts, such as increasing institutional adoption, could help XRP in future trading.
Ripple and XRP's Prospects
Recent news regarding an increase in institutional use of XRP, such as the launch of custody services in South Korea, suggests a growing interest in the cryptocurrency. However, the lack of accumulation from larger investors and a sharp decline in token reserves on exchanges create uncertainty in XRP's future movements.
The decline in XRP flows from large holders, coupled with positive news on institutional adoption, presents a complex situation for the token. Market movements in the coming weeks may prove crucial for its future.
