XRP is under increased selling pressure as a notable reduction in large-holder wallets coincides with a substantial rise in exchange-associated token balances. The cryptocurrency recently traded close to $1.29, declining about 17% over the last month amid persistent concerns over major investor activity and its potential impact on price momentum.
Whale exits and rising exchange balances fuel uncertainty
Blockchain analyst Ali Martinez reported that between October 19 and October 25, the number of wallets holding 10 million to 100 million XRP slid from 351 to 339, a net decrease of 12 addresses. These large wallets, valued between $13 million and $130 million at $1.30 per token, are typically seen as indicators of whale sentiment in the market.
A reduction in wallets within this tier does not always mean major holders are selling off their assets. Wallets may change categories due to internal transfers, asset redistribution, or by surpassing the upper threshold of 100 million tokens. Nonetheless, the shift emphasizes increased caution among market participants.
During the observed period, Martinez also noted that exchange-associated XRP balances climbed from roughly 11.003 billion to 11.05 billion tokens, a net gain of about 47 million XRP. At current market prices, this shift equals approximately $61.1 million added to exchange holdings.
Such increases in exchange balances have raised alarms in the past, particularly following 6.05 billion XRP in gross deposits recorded over a separate 30-day window. Still, gross deposits and net balances represent different metrics and do not necessarily confirm outright sales by whales.
A separate independent wallet-tracking service reported different totals based on its unique pool of labeled addresses, underscoring the challenges of relying on a single dataset for comprehensive analysis.
XRP exchange balances saw a net rise of about 47 million tokens recently, but analysts caution that higher wallet numbers and transfer activity do not directly indicate sales without corroborating evidence from multiple datasets.
Meanwhile, U.S. spot XRP exchange-traded funds (ETFs) attracted a cumulative $4.3 million between October 19 and October 23, partially reversing modest outflows from the previous week. However, these funds registered no net inflows on October 23, despite holding a total of about $1.48 billion in assets compared to $1.81 billion in cumulative net investments since their respective launches.
On the protocol side, Santiment data revealed a steady increase in XRP Ledger participation, reaching a record high of 8.24 million funded wallets. This trend, however, highlights that growth in user base alone does not always translate to rising asset prices.
Mini dictionary: Santiment is a blockchain analytics platform that tracks on-chain, social, and development metrics across major cryptocurrencies, offering in-depth data to traders and analysts.
Key support levels and upcoming Ripple events
According to Martinez, the $1.26 price point marks a critical support level for XRP. If sustained trading below this threshold occurs, he indicated the next technical targets could be $1.11, followed by $0.98. The latter would represent a potential 22% drop from $1.26 should selling pressure persist.
| Support/Resistance Level | Potential Price Action |
|---|---|
| $1.26 (support) | Decline likely if breached |
| $1.11 (support) | Secondary downside target |
| $0.98 (support) | Further downside risk |
| $1.40 (resistance) | Recovery target if reclaimed |
| $1.50 (resistance) | Potential further upside |
Conversely, Martinez pointed out that staying above $1.26 and moving past $1.40 could shift momentum toward a recovery, with $1.50 as the next resistance level to monitor.
Investor sentiment may also hinge on Ripple‘s annual Swell conference, scheduled for October 27 to 29, where financial institutions will explore payment innovations, stablecoins, and tokenization. Ripple, a San Francisco-based blockchain technology company, is known for its cross-border payments network leveraging the XRP Ledger.
Recent partnership reviews suggest that institutional agreements by Ripple do not directly translate to proportional increases in XRP demand, reflecting the complex dynamics at play between network utility and token value.
Traders are also monitoring the company’s scheduled November escrow release. While Ripple routinely unlocks XRP from escrow, these tokens are not automatically sold, and their impact on price depends on secondary market flows.
Although the number of large XRP wallets has decreased, analysts say this alone does not guarantee a price decline. Sustained support above $1.26 is expected to be a more decisive factor in determining short-term market direction.
