On-chain data shows that the 30-day net flow of XRP whales has remained deeply negative recently, a sign that the asset is under persistent selling pressure.
XRP whale flow is currently negative $50 million per day
As CryptoQuant community analyst Maartunn explains in a new article on X, XRP whales have been offloading coins recently. “Whales” refer to large investors who hold significant amounts of money in their portfolio and exert some influence over the market.
The behavior of these key investors is often worth monitoring, because while it may not always directly correlate to the trajectory of the asset, it can still be indicative of what influential entities think about cryptocurrency.
There are many ways to track the behavior of XRP whales, one of them being the metric cited by Maartunn: Whale Flow. This metric measures the net amount of coins flowing into or out of this cohort’s wallets.
Below is the chart shared by the analyst that shows the 30-day moving average (MA) trend of XRP Whale Flow over the past few years:
As seen in the chart above, the 30-day MA XRP Whale Flow plunged to a very negative value in July as the coin peaked above $3.6. This suggests that large holders took advantage of the rally to participate in profit-taking.
It is important to note that since the indicator’s fall continued, its value has remained at a similar red value until today, meaning the whales just need to exert selling pressure.
Currently, the metric sits at a negative $50 million per day, meaning the whales have withdrawn an average of $50 million each day over the past month. This could be a reason why the cryptocurrency hasn’t seen a big rally recently, while Bitcoin and other coins have been flying.
Separately, analyst Ali Martinez identified a price level that could help XRP recover. As shown in the chart below shared by Martinez in an article X, the coin has apparently been trading inside a parallel channel for the past two months.
A parallel channel is a technical analysis (TA) consolidation pattern that forms when an asset trades between two parallel trendlines. The bottom level of the pattern acts as the support line. From the chart it is visible that in the case of this XRP parallel channel it stands at $2.73.
The analyst noted that if this support level holds, the coin could rebound to the level above $3.10.
XRP Price
At the time of writing, XRP is trading around $0.745, down over 11% over the past week.
Featured image of Dall-E, charts from TradingView.com
