Important points:
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Over 21,000 new XRP wallets were created in 48 hours, the fastest increase in 8 months.
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Record decentralized exchange trading coincides with XRP price decline, suggesting inorganic activity.
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Whale Wallet outflows have stabilized after a $650 million sale, suggesting a potential bottom for XRP.
XRP (XRP) rebounded 16% from Thursday’s monthly low of $2.06 to $2.40 after closing Tuesday’s daily candlestick at $2.20, its lowest since July 4. Despite the rescue market, altcoins continue to struggle to regain bullish dominance, and broad sentiment remains cautious.
However, on-chain data showed new activity occurring across the XRP Ledger. Analytics platform Santiment noted that participation in the XRP network has increased sharply, with over 21,000 new wallets created in just 48 hours, the highest rate of increase in eight months.
Similarly, CryptoQuant data 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.
While such spikes typically indicate improvements in network health and adoption, this time they coincide with significant price declines, and this divergence raises questions about the underlying drivers of activity.
Analysts have suggested that this disconnect may indicate that a significant portion of trading volume is coming from whale distributions, arbitrage, or automated trading rather than natural purchases.
Related: XRP legally recognized as property in India: Why this court ruling matters
XRP whale flow suggests price stability
XRP price has been in a sustained downward trend since peaking at $3.66 on July 18th, a period marked by a sustained whale sell-off. Over the past 90 days, XRP has recorded negative whale flows of over $650 million, reflecting consistent large outflows.
However, recent data indicates that this trend may be reversing as 90-day total whale inflows have turned neutral, potentially indicating an early sign of market bottoming.
Cryptocurrency analyst Crazzyblockk pointed out that Binance futures data also shows a clear contrast between XRP and major cryptocurrencies. While open interest in Bitcoin and Ether futures decreased significantly to $59.87 million and $148.69 million, respectively, XRP futures positions remained relatively resilient.
“Traders appear to be rotating into XRP and taking advantage of the slight dip to accumulate positions, in stark contrast to the risk-off sentiment that dominates the BTC and ETH markets,” the analyst said.
As whale sales ease and new wallet creation accelerates, XRP on-chain and derivatives data suggests a possible stabilization phase, but confirmation from price trends remains important.
Related: XRP Price Signals a Classic “Hidden Bullish Divergence.” Is $5 still valid?
This article does not contain investment advice or recommendations. All investment and trading moves involve risk and readers should conduct their own research when making decisions.