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The broader cryptocurrency market saw a sharp drop today, and the price of XRP took a big hit, falling to the $1.35 level. After a period of downside action, current on-chain activity is weakening, which is hinting at a continuation of the current bearish environment for the leading altcoin.
XRP’s price is facing heightened bearish pressure following a sharp market pullback on Monday, capping its upward attempts. In the meantime, the activity of large holders is once again drawing attention to the altcoin’s short-term price outlook.
According to a verified CryptoQuant author and analyst, Darkfost, these investors’ activity currently raises short-term risk for the altcoin as data shows a noticeable uptick in whale transactions and sizable wallet movements. Significant capital repositioning by major holders frequently precedes times of increased volatility, particularly in a market already dealing with brittle sentiment.
Darkfost has mainly attributed the ongoing waning of investors’ performance to Bitcoin’s sideways price action. BTC continues to range, triggering limited directional clarity in the short term. This lack of momentum is putting pressure on the broader market, with altcoins like XRP persistently underperforming in the absence of a clear trend.
In addition, this week was notably marked by a significant inflow of the token to the world’s largest cryptocurrency exchange, Binance. Since the market turned extremely bearish, the platform has remained the go-to exchange for large transactions due to its robust liquidity.
Looking at the data from the chart, more than 31 million XRP were seen being moved to the exchange in a single day, particularly on Sunday. Interestingly, these inflows were primarily spearheaded by activity from the largest investor group.
Wallet addresses holding less than 1,000 XRP and 1,000 to 10,000 holders sent 6,543 and 73,630 of the token, respectively, to Binance. 10,000 to 100,000 holders transferred 2,938,809, those holding between 100,000 and 1 million move 14,236,825, and those above 1 million sent 14,494,865 XRP to the Binance platform.
When taken as a whole, this indicates a sudden potential sell-side pressure of about $45 million that needs to be closely watched. Should this selling pressure persist, the expert believes that the altcoin may struggle to recover from its ongoing correction in the near term.
Even in a volatile environment, the XRP Spot Exchange-Traded Funds (ETFs) are still displaying momentum. Xaif Crypto, a market expert, shared on X that the newly launched funds are quietly stacking, suggesting underlying strength and confidence.
Over the past 3 months alone, Bitwise added more than $258.97 million of XRP, Franklin Templeton recorded over $329.86 million, and Canary Capital saw inflows of over $105.32 million. While the price seems uninteresting, hundreds of millions are pouring into the altcoin’s exposure. Currently, smart money is positioning early, and this activity could play a role in shaping the altcoin’s next price trajectory.
