On-chain data shows the XRP whales have participated in major distribution over the past two weeks, a sign that can be bearish for the asset’s price.
XRP Whales Have Sold 160 Million Tokens Recently
In a new post on X, analyst Ali Martinez has talked about the latest move from the XRP whales. The analyst has cited Santiment’s Supply Distribution indicator, which measures the total amount of the asset’s supply that a given wallet group as a whole is holding right now.
Whales are defined as addresses carrying between 1 million and 10 million tokens of the cryptocurrency. At the current exchange rate, the range converts to about $2.99 million at the lower end and $29.9 million at the upper end. Thus, only the market participants with a substantial amount of capital fall in this range.
These large investors can carry some degree of influence in the market, so their movements can be worth keeping an eye on. One way to do so is through the Supply Distribution.
Now, here is the chart shared by the analyst that shows the trend in the Supply Distribution of the 1 million to 10 million XRP group over the last few months:
As displayed in the above graph, the XRP whales took their supply to a high earlier in the month, but since then, these holders have participated in selling. Interestingly, most of this distribution came as the asset’s rally to the $3.1 level took place.
This timing would imply that the whales were using the price surge as an opportunity to take profits and exit from the market. In total, these humongous entities have offloaded 160 million tokens of the cryptocurrency over the last couple of weeks, worth a whopping $486 million right now.
The coin has declined since its high, and if selling from the whales continues, it’s possible that the drawdown may extend. From a technical perspective, however, XRP may actually be near a rebound, as Martinez has pointed out in another X post.
The reason is that the Tom Demark (TD) Sequential has just given a reversal signal for the asset.
The TD Sequential is an indicator that counts up candles of the same color in an asset’s price chart to identify points of trend exhaustion. Once nine candles are in, it signals that the earlier trend is over and a reversal may be about to occur. From the above chart, it’s visible that XRP has formed a TD Sequential signal with nine red candles on its 4-hour chart, suggesting a bullish turnaround could potentially take place next.
XRP Price
At the time of writing, XRP is floating around $3.02, down almost 1% over the last 24 hours.
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