Dormant XRP Awakens: Is This the Catalyst for a $4 Surge?

Sleeping giants stir in the XRP ledger—after years of inactivity, a wave of dormant coins just hit the market. Could this be the fuel for the altcoin's moonshot to $4?

The whale watch begins

Movement in long-frozen wallets always sends ripples through crypto circles. But this time, the timing's suspiciously convenient—just as Ripple's legal dust settles and traders scramble for the next big narrative.

Liquidity tsunami or smart money play?

Market makers are already positioning for volatility. Some see this as organic demand; others spot classic 'buy the rumor, sell the news' theater. After all, nothing pumps a coin like the illusion of scarcity suddenly reversing.

The $4 delusion—or destiny?

Technical charts show a clean breakout above the 2023 resistance, but let's not pretend Wall Street won't dump this the second retail FOMO peaks. Remember: in crypto, every 'awakening' usually means someone's about to take a nap—on a pile of your money.

Key Takeaways

XRP is seeing elevated redistribution risk, as multiple Age Consumed spikes. A 10% pullback suggest smart money is becoming reactive, putting XRP’s $3.15 support zone in focus.

Ripple [XRP] is showing clear signs that older, long-held tokens are moving again. 

Over the past month, the Mean Dollar Invested Age (MDIA) has dropped by 13%, wiping out about 91 days of age. This decline suggests increased token turnover among previously dormant holdings.

Complementing this, Age Consumed has seen multiple sharp spikes, signaling that significant volumes of dormant XRP have moved. In tandem, these metrics point to early investors or whales rotating capital.

Source: Santiment

The big question is, where’s that capital heading? Is it being redeployed to hedge risk and stay exposed? Or are these players using the rally as exit liquidity to offload into strength?

Structurally, XRP still looks solid. It is up 40% on the month and holding a strong base around $3.15. So far, the market seems to be absorbing the supply well. 

Still, with long-held supply entering circulation, could the $3 zone come under pressure if buyer demand thins out?

XRP faces key support retest amid heavy rotation

Zooming into XRP’s recent price action, paired with the drop in MDIA and sharp spikes in Age Consumed, the broader setup suggests “elevated” redistribution risk.

Despite posting a strong 64% rally from its July swing low at $2.23 to a monthly high of $3.64, XRP continues to underperform ethereum [ETH] on a relative basis. 

While ETH closed the month with a 50% gain, its drawdowns were far more contained, pointing to stronger capital retention. XRP, on the other hand, has retraced over 10% in the latter half of July.

Source: TradingView (XRP/USDT)

Notably, this drawdown has aligned with a $9.3 million contraction in XRPL’s Total Value Locked (TVL), possibly driven by profit-taking or early de-risking behavior.

It puts XRP in a more reactive spot. Smart money seems quick to adjust exposure to volatility.

With that in mind, if broader risk-off flows accelerate, XRP’s $3 handle could come under pressure, making the $3.15 support a key structural level to hold in the NEAR term.