- Large XRP holders are dumping tokens in a record sell-off
- XRP surged over 500% from November last year
- Single-day sell-off exceeded $120 million
Cryptocurrency analyst Miles Deutscher highlighted the fact that XRP whales have been selling off their holdings at levels never seen before. This selling activity intensified following a substantial price rally where XRP surged over 500% from November 2024.
Deutscher suggests that XRP is undergoing a distribution phase, a period where major investors liquidate their positions, often signaling that a price drop might be coming.
Over $120 Million in XRP Sold in Single Day
Notably, a single-day sell-off exceeded $120 million, underscoring the scale of this distribution.
XRP had a good run since November, as it experienced a remarkable rally, increasing from $0.52 to over $2. At the moment, it’s sitting at $2.67.
It’s still early to say for sure what will happen, but usually, when whales sell large amounts, it can hurt investor confidence. This can lead to more people selling, including regular investors. Plus, the liquidation of substantial holdings can bring about price swings, potentially causing sudden price drops in the short term.
Related: XRP Whales Flood Binance: 2.66 Billion Tokens Moved Amid Price Swings
Distribution Phase May Signal Limited Upside
It’s worth noting that a distribution phase suggests that whales anticipate limited short-term upside, prompting them to realize profits.
Typically, the local distribution phase occurs when large investors start selling their holdings gradually, often after a big price rally.
If demand is strong, XRP may enter a sideways movement, also known as consolidation. In the event demand weakens, it could trigger a price drop.
Strategic Crypto Reserve Inclusion Has Mixed Impact on XRP
This news about whale selling comes a day after US President Donald Trump announced the creation of a US strategic crypto reserve, and specifically named XRP as one of the digital assets to be included. Bitcoin, Ether, Solana, and Cardano are also included.
The announcement led to a substantial surge in XRP’s standing, with its market capitalization increasing by $44 billion within an hour. In addition, XRP experienced a significant price increase, reaching a peak of $3.
Related: XRP Whales Trigger Excitement: Price Rally Yet to Follow
So far, the inclusion of XRP in the strategic reserve has been met with varied opinions. While some industry leaders have embraced the multichain approach, others have criticized the selection of certain altcoins.
Regardless of the general feeling, these events emphasize XRP’s evolving role in the cryptocurrency landscape. As to how much of an impact these developments will have on XRP long term, it’s yet to be seen.
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