XRP giant whale sells off $650 million and then stops! Wallet hits an 8-month high.

XRP closed Tuesday at $2.20, hitting its lowest level since July 4th, but on-chain data indicates a strong recovery signal. Over the past 48 hours, more than 21,000 new XRP wallets have been created, marking the fastest growth rate in eight months. After selling off $650 million, whale wallet outflows have stabilized, with total flow over the 90-day period turning neutral, suggesting XRP may have bottomed out.

21,000 New Wallets Entered, Fastest Growth in 8 Months

(Source: CryptoQuant)

Despite recent price weakness, the number of XRP wallets has hit a record high, implying the market may be bottoming. Analytics platform Santiment notes that XRP network engagement has surged, with over 21,000 new wallets added in just 48 hours—the highest growth rate in eight months. This explosive growth contrasts sharply with the falling prices, indicating significant underlying structural changes in the market.

Rapid growth in new wallets is often seen as a sign of network health and increasing adoption. More participants entering the ecosystem typically suggest long-term demand is building. However, in this case, the simultaneous decline in price and increase in wallet count creates a complex picture, raising questions about what’s driving this activity.

Historically, XRP’s major bottoms have often coincided with similar wallet growth patterns. After deep price corrections, smart money and long-term holders tend to accumulate during panic selling. The addition of 21,000 wallets in 48 hours suggests this accumulation is accelerating. These new wallets could include retail investors entering at low prices or whales dispersing holdings to avoid exchange monitoring.

Additionally, CryptoQuant data shows that XRP Ledger’s native decentralized exchange (DEX) trading volume hit a record high, reaching 954,000 trades in a single day—the highest in recent months. While increased on-chain activity generally indicates network health and adoption, this surge is occurring alongside a significant price decline.

Contradictory Signals Behind Record DEX Trading Volume

XRP Ledger’s DEX daily trading volume hit 954,000 trades, an all-time high. DEX volume typically reflects genuine on-chain activity, as it’s harder to fake compared to centralized exchanges. This suggests real usage of the XRP ecosystem is rapidly increasing.

However, analysts believe this disconnect may indicate that much of the volume is driven by whale distributions, arbitrage, or automated trading rather than organic demand. When prices fall but trading volume spikes, it often signals large holders are liquidating positions. Whales might be offloading on DEXs to avoid impacting prices on centralized exchanges. Automated bots and arbitrageurs also trade frequently during volatile periods to exploit price differences across platforms.

Three Interpretations of the DEX Volume Surge

• Whale Distributions Completed: Large holders are liquidating on DEX, reducing selling pressure on centralized markets.

• Arbitrage Activity Spikes: Traders are actively arbitraging across platforms during volatility, increasing volume.

• Real Demand Growing: New users and long-term holders are accumulating on DEX, preparing for a future rally.

From XRP’s perspective, these conflicting signals could actually be typical of a market bottoming out. When whales finish distributing and retail investors start accumulating, the market structure shifts. The chips move from strong hands to weaker hands, creating conditions for a rebound—since weaker hands are more easily shaken out, and strong hands can re-enter at higher prices.

$650 Million Whale Selloff and Capital Outflows Stabilize

(Source: CryptoQuant)

Since peaking at $3.66 on July 18, XRP’s price has been in a downtrend, with whales continuously selling. Over the past 90 days, whale net outflows exceeded $650 million, reflecting sustained large-scale capital exit. This massive sell pressure explains XRP’s drop from $3.66 to $2.06—a 44% decline.

Recently, however, data suggests this trend may be reversing, as the total whale flow over 90 days has turned neutral. This could be an early sign of market bottoming. The cessation of whale selling is a critical technical indicator, implying that major holders have finished liquidating or significantly reduced their positions. With selling pressure easing, the market may stabilize and rebound.

Historically, XRP’s major bottoms have often been associated with whale net outflows turning positive. When the 90-day net flow hits zero, it typically signals accumulation phase. During this period, prices tend to consolidate, volume diminishes, retail interest wanes, and smart money quietly builds positions. Once accumulation completes, explosive rallies often follow.

Crypto analyst Crazzyblockk points out that Binance futures data shows a stark contrast between XRP and mainstream cryptocurrencies. Bitcoin and Ethereum futures open interest have fallen sharply to $59.87 million and $148.69 million, respectively, while XRP’s futures holdings remain relatively stable. Analysts note, “Traders seem to be shifting toward XRP, using the slight dip to build positions, contrasting with risk-averse sentiment dominating BTC and ETH markets.”

Stable Futures Positions vs. BTC and ETH

XRP’s futures holdings remaining stable amid overall market decline is noteworthy. While Bitcoin and Ethereum futures saw significant reductions—indicating traders are actively closing positions and risk-off sentiment is prevalent—XRP’s holdings stayed steady. This suggests traders are not panicking but possibly accumulating at lows.

Stable futures positions carry a dual implication for XRP technical analysis. First, they indicate that confidence in XRP has not collapsed despite price corrections. Second, they imply potential buying interest is accumulating, which could serve as a foundation for future upward movement once market sentiment improves.

Three Major Advantages of XRP Compared to BTC and ETH

• Stable futures holdings show trader confidence remains intact

• On-chain wallet growth hits 8-month high, indicating real demand

• Whale selling has halted, removing major selling pressure

On Thursday, XRP rebounded 16% from its monthly low of $2.06 to $2.40. This rally coincided with whale outflows hitting zero and a surge in new wallets, providing multiple technical confirmations. Despite the bounce, overall market sentiment remains cautious, and XRP has yet to regain a bullish trend. Key resistance levels are at $2.50–$2.60; a successful break above could target the psychological $3.00 mark.

As whale selling diminishes and new wallets accelerate, on-chain and derivatives data suggest the market may be entering a stabilization phase. However, confirmation of this trend depends on whether the price can hold above $2.40 and whether futures open interest remains steady. Investors should watch these levels closely for signs of sustained recovery.