Amidst changes in XRP, major holders are engaging in asset sell-offs. Meanwhile, smaller traders maintain their optimism.
Distribution of Tokens by Major Holders
Blockchain data reveals that some of the largest XRP holders are beginning to offload their tokens. Analyst Maartunn reports that whale activity on the XRP Ledger has turned negative, indicating that these players are distributing their holdings rather than accumulating. This scenario has been observed earlier this year, when sustained selling by major wallets coincided with a local market peak.
Optimism Among Smaller Traders
Despite whale exits, sentiment in the derivatives market shows that smaller traders remain optimistic. XRP's funding rate is currently at 0.0114 and is projected to rise to 0.0159. Elevated funding rates indicate traders are paying to maintain long positions, reflecting confidence in continued upside.
Potential for Increased Volatility
The market is split: whales are reducing their positions while retail traders and some institutions continue to actively trade. Historically, this combination often leads to increased volatility, as the optimism from smaller traders struggles to absorb the steady outflows from larger holders. If demand remains strong, XRP could continue to rally; however, if whale distribution accelerates without sufficient new inflows, the market could face a sharp correction similar to those seen in past cycles.
The dynamics of sell-offs among major XRP holders, alongside the optimism of smaller traders, create complex conditions for the market. It is crucial to monitor developments to understand possible trends.
