Large XRP holders have begun liquidating significant amounts of their assets, intensifying concerns about the cryptocurrency’s stability amid a broad market correction. These movements have led analysts to warn of growing downside risks for XRP if current trends persist.
Whale activity puts XRP at risk
Ali Martinez, a prominent cryptocurrency market analyst, has highlighted recent data from Santiment, a blockchain analytics platform. According to these metrics, the number of wallets holding between 10 million and 100 million XRP has dropped from 351 to 339 within recent weeks, indicating that twelve of the largest holders have reduced their exposure.
This simultaneous reduction in large wallets removes a significant layer of market support that previously helped cushion XRP from volatility. The decrease suggests institutional or high-net-worth investors are withdrawing, potentially accelerating any downward move in the token’s price.
On-chain analysis revealed a substantial drop in major XRP wallet holdings, a shift that could weaken key support levels and expose the token to a larger correction if selling pressure persists.
In addition, these wallet outflows have coincided with a major inflow of XRP to cryptocurrency exchanges. In total, the XRP balance held on major trading platforms has risen from 11.003 billion tokens to 11.05 billion, adding 50 million XRP to the available supply on exchanges.
Mini dictionary: Santiment, a blockchain analytics platform, provides on-chain data and market intelligence for cryptocurrencies, enabling investors and analysts to track wallet activity, whale movements, and market sentiment across digital assets.
This influx of liquidity onto exchanges creates a heavier supply overhang, leaving XRP particularly vulnerable to negative market catalysts as sellers take profits and weaken support levels.
| Metric | Previous | Current | Change |
|---|---|---|---|
| Whale wallets (10M–100M XRP) | 351 | 339 | -12 |
| XRP on exchanges (billion) | 11.003 | 11.05 | +0.047 |
Critical support at $1.26 in focus
Currently, XRP trades near $1.30, remaining perilously close to the lower boundary of a key ascending price channel that has held since August. Heavy selling from large holders has squeezed the price towards the crucial $1.26 support level, considered vital by traders to maintain the short-term upward trend.
If buyers can defend $1.26, analysts believe the price could stabilize within the $1.30 to $1.43 range, preserving the possibility for another rally towards the recent high of $1.62. However, if $1.26 fails, a wave of stop-loss triggers could drive XRP first to an intermediate support at $1.11. Breaching that level would likely extend losses and force the asset into a phase of prolonged consolidation.
Any recovery now depends on buyers being willing to absorb additional market supply at these critical zones, while continued whale selling could undermine efforts to hold crucial price levels.
XRP’s immediate outlook relies on both the willingness of buyers to step in at support levels and the actions of major holders. Unless market participants show strong demand at $1.26, the risk of a deeper downturn remains prominent.
