The cryptocurrency market saw another wave of volatility this week, with Ripple’s XRP dropping 4% on Thursday and struggling near the $2.12 support level. While short-term investors rushed to exit their positions, a contrasting trend emerged among large holders—commonly referred to as "whales"—who seized the opportunity to accumulate more XRP amid the sell-off. This divergence in market behavior highlights a growing narrative: retail fear versus institutional confidence.
Short-Term Traders Trigger Sell-Off Pressure
Following the recent market downturn, short-term XRP holders have been the primary drivers of selling pressure. On-chain data from analytics platform Santiment reveals that coins aged between 1 day to 7 days and 90 days to 180 days dominated spending activity during the dip.
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The SOPR (Spent Output Profit Ratio) metric further supports this trend. It shows that investors holding XRP for 1–7 days are selling at a loss, likely trying to minimize further downside risk. Meanwhile, those who held between 90 and 180 days are cashing out profits before the price falls below their cost basis—indicating a cautious but strategic approach by mid-term investors.
This wave of profit-taking and loss-cutting reflects typical market psychology during correction phases. However, while smaller traders retreat, larger players are positioning themselves for long-term gains.
Whale Accumulation Signals Strong Confidence
In contrast to the selling pressure from short-term holders, XRP whales—defined as addresses holding between 1 million and 100 million XRP—have been actively buying. Since Monday’s market drop, these large entities have collectively added 440 million XRP, worth nearly $1 billion, to their holdings.
Such accumulation is clearly visible in the supply distribution chart, which shows a steady increase in balances within the 1M–10M and 10M–100M XRP ranges. This suggests that whales are absorbing supply from panicked sellers, viewing the current price dip as a strategic entry point.
Whale buying activity often precedes significant price movements. Historically, sustained accumulation by large holders has signaled market bottoms and foreshadowed future rallies—especially when accompanied by strong fundamentals.
Ripple Expands Institutional Footprint in South Korea
Amid market turbulence, Ripple continues to strengthen its real-world utility and institutional adoption. On Wednesday, the company announced a new partnership with BDACS Korea, a licensed digital asset custodian, to expand its custody services in South Korea.
Through this collaboration, institutions will be able to securely store both XRP and RLUSD, Ripple’s U.S. dollar-pegged stablecoin, using Ripple Custody. The move aims to deepen Ripple’s presence in one of the largest geographic markets for XRP adoption.
The initiative also aligns with broader efforts to support developers on the XRP Ledger (XRPL), promote RLUSD usage, and collaborate with regulatory-friendly zones like Busan’s blockchain special district. These developments reinforce XRP’s role beyond speculation—positioning it as a functional asset in cross-border payments and institutional finance.
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Technical Outlook: Can XRP Hold Key Support?
From a technical perspective, XRP is navigating a critical phase. According to Coinglass, over **$6.37 million** in futures positions were liquidated in the past 24 hours, with longs accounting for $3.95 million and shorts $2.42 million—indicating intense volatility and leveraged trading risks.
After being rejected at the 100-day EMA, XRP has been consolidating between $2.12 and $2.24. This range sits within a longer-term descending channel that has shaped price action since mid-January.
If bearish momentum persists and XRP fails to defend the $1.96 support level, the next potential floor could form near the lower boundary of the descending channel. Conversely, a sustained breakout above the upper trendline would be needed to reverse the current downtrend.
Key indicators reflect prevailing bearish sentiment:
- The Relative Strength Index (RSI) remains below 50, suggesting downward momentum.
- The Awesome Oscillator (AO) is also in negative territory, reinforcing weak buying pressure.
Until these metrics shift decisively upward, caution remains warranted.
Frequently Asked Questions (FAQ)
Q: Why are XRP whales buying while others are selling?
A: Whales often have greater risk tolerance and access to on-chain data that informs long-term strategies. They may view short-term dips as buying opportunities, especially when supported by strong fundamentals like institutional adoption or technological progress.
Q: What does SOPR tell us about XRP investor behavior?
A: SOPR values above 1 indicate profitable spending; below 1 suggest losses. In XRP’s case, short-term holders are selling at a loss (SOPR < 1), while mid-term holders (90–180 days) are exiting profitably—revealing divergent timelines and strategies across investor groups.
Q: Is RLUSD gaining traction in traditional finance?
A: Yes. With AMINA Bank AG becoming the first bank globally to support RLUSD and new custody partnerships like BDACS Korea, Ripple’s stablecoin is making measurable progress in bridging crypto with traditional financial systems.
Q: What happens if XRP breaks below $1.96?
A: A breakdown below $1.96 could trigger additional selling pressure, potentially pushing price toward the lower bound of the descending channel. Traders should monitor volume and whale activity for early reversal signals.
Q: How does whale accumulation affect future price?
A: Sustained accumulation reduces circulating supply and often precedes bullish moves. When whales buy during dips, it can stabilize price and set the stage for upside once market sentiment improves.
Market Sentiment vs. On-Chain Reality
While headlines focus on price drops and liquidations, on-chain metrics reveal a more nuanced picture. The current dip has triggered emotional reactions from short-term traders—but it has also created an ideal environment for strategic accumulation by informed investors.
Ripple’s ongoing expansion into institutional markets adds credibility to XRP’s long-term value proposition. With growing use cases in custody, payments, and stablecoin integration, XRP is evolving beyond pure speculation into a tool for real-world financial efficiency.
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Final Thoughts
XRP’s recent decline mirrors broader crypto market trends, but its underlying dynamics tell a story of resilience. As short-term holders exit, whales step in—absorbing supply and signaling confidence. Combined with expanding institutional partnerships and strengthening technical infrastructure, these factors lay the groundwork for potential recovery.
For investors, understanding the difference between noise and signal is crucial. Price fluctuations are inevitable, but sustained whale accumulation, coupled with real-world adoption, suggests that XRP may be building strength for the next phase of growth.
Keywords: XRP, whale accumulation, short-term holders, SOPR, descending channel, support level $1.96, RLUSD adoption, on-chain analysis