XRP Whales Sell at Record Levels, Analysts Weigh In on Altcoin’s Future
On March 2, XRP registered a massive rally of 34.15%. The price pump came after US President Donald Trump’s announcement that XRP (XRP) would be included in a US strategic crypto reserve alongside Solana (SOL) and Cardano (ADA).
However, the altcoin retraced 50% of its rally on March 3, and one analyst highlighted that XRP whales are potentially making a move behind the scenes.
XRP Whales Sell at Record Levels
With XRP currently 30% below its all-time high, CryptoQuant founder Ki-Young Ju implied that large XRP addresses are potentially cashing out. With the help of XRP’s volume bubble map, he highlighted heightened activity between $2 and $3 over the past month.
While high-volume activity can also be synonymous with buyers, Young-Ju stated that the altcoin is currently in a distribution phase.
Technical Analysis
From a technical perspective, a “distribution phase” describes a stage in the market cycle where major investors gradually sell off their holdings to lock in profits, typically occurring near the height of an uptrend.
Maartunn, a verified onchain analyst, confirmed that XRP is undergoing a distribution phase. With the help of whale flow analysis, the analyst identified that negative whale flows calculated with a 30-day moving average (30-DMA) reached an all-time low level.
Exchange Reserves
The XRP exchange reserves on Binance also registered a sharp increase from 2.72 billion to 2.90 billion tokens. A rise in exchange reserves indicates higher selling pressure, which aligns with the above development of XRP’s distribution phase.
Conclusion
While XRP’s recent rally has raised hopes for the altcoin’s future, the analysis suggests that the asset may be in a distribution phase. This could indicate that large investors are selling off their holdings to lock in profits, which could negatively impact the market.
FAQs
Q: What is a distribution phase in the market cycle?
A: A distribution phase is a stage in the market cycle where major investors gradually sell off their holdings to lock in profits, typically occurring near the height of an uptrend.
Q: What does the XRP volume bubble map show?
A: The XRP volume bubble map highlights heightened activity between $2 and $3 over the past month, indicating that large XRP addresses may be cashing out or buying the altcoin.
Q: Is XRP’s recent rally sustainable?
A: According to analysts, XRP’s recent rally may be short-lived, as the altcoin is currently in a distribution phase and may continue to decline.
Q: What does the XRP exchange reserve increase indicate?
A: The increase in XRP exchange reserves on Binance indicates higher selling pressure, which aligns with the above development of XRP’s distribution phase.
