XRP Whales Pull $2.5B Off Exchanges – Is a Supply Shock Incoming?
A major shift is taking place in the XRP market. Large investors—often called “whales”—are withdrawing billions worth of XRP from exchanges and storing them in private wallets.
This exodus has reduced the supply available for trading, sparking speculation about an incoming price surge.
Crypto analyst Ali Martinez highlighted the trend, noting that active XRP addresses skyrocketed by 620% in one week, jumping from 74,589 to 462,650. This sudden spike signals increasing activity and growing investor interest.
Adding to the momentum, the XRP Ledger (XRPL) has expanded by 24% in 2024, reaching 6.2 million accounts. Increased trust line connections between accounts further indicate rising adoption.
Could this shift in supply lead to a short squeeze? Some analysts believe whales are positioning themselves ahead of major institutional adoption and regulatory clarity.
Institutional Interest and Regulatory Clarity Fueling Demand
One key factor driving XRP’s utility is its increasing use in institutional finance. The demand for XRP-based payment solutions has been rising, particularly as financial firms integrate Ripple’s technology.
Here’s what’s driving institutional demand:
Potential XRP ETFs – Multiple asset managers have filed for XRP-backed exchange-traded funds, mirroring the success of Bitcoin ETFs.
Regulatory Clarity – Ripple’s ongoing legal battle with the SEC has fueled uncertainty, but the case is nearing resolution. A favorable outcome could open the floodgates for institutional investors.
Trump’s Impact on Crypto – XRP soared 500% in November following Donald Trump’s election victory. With Trump seen as crypto-friendly, traders speculate on further gains.
Beyond institutional adoption, meme coin activity has surged on the XRPL, driving transaction volumes and boosting demand for XRP trust lines. This trend mirrors the explosion of meme coin markets seen in other blockchains.
XRP/USD Technical Outlook – Is a Breakout Ahead?
XRP is currently trading at $2.54, up 4.02% in the last 24 hours, holding above key support levels. The 50-day EMA at $2.44 is acting as a floor, reinforcing the bullish outlook.
Key levels to watch:
Resistance: $2.69, $2.82, $2.96
Support: $2.44, $2.27
A breakout above $2.69 could send XRP rallying toward $2.82 and $2.96, while failure to hold $2.44 could lead to a retest of $2.27.
As whales continue accumulating and institutional adoption accelerates, traders should watch for strong buying momentum above $2.69, which could trigger the next leg up.
ABOUT THE AUTHOR
See More
Sidebar rates
Related Posts
SaveAdd 3440
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals