XRP Whale Movements Hint at Coming Storm—Is a Price Shake-Up Imminent?

Whales are circling XRP—and when big money moves, markets tremble. Here's why traders are bracing for turbulence.

Behind the scenes: Mega-holders shuffling stacks rarely do it for charity. These transactions often signal strategic positioning before major price action.

The cynical take: If history repeats, retail investors will panic-sell the dip just as institutions finish loading up—because nothing makes Wall Street happier than cheap coins and weaker hands.

Whale Movements Raise Red Flags

CryptoQuant’s Head of Research, Julio Moreno, noted that the 30-day moving average of whale inflows to exchanges rose from 141 million XRP at the beginning of July to 260 million tokens by early August. The spike in movement suggests that these large holders could be preparing to sell, a MOVE that could trigger selling pressure in the broader market.

Sudden and increasing whale flows into exchanges may indicate an inflection for prices as large holders may start selling on exchange.

Market analysts have long monitored whale behavior as a leading indicator of price direction. When whales move large amounts of crypto to exchanges, it’s often interpreted as a signal that selling activity could follow, leading to a decline in price. On the contrary, when whales withdraw assets from exchanges, it often signals accumulation or long-term holding, which tends to boost investor confidence.

XRP Price Action and Historical Trends

Last month, XRP experienced a significant price rally, jumping nearly 10% on a single day to reach $3.29, according to CoinGecko data. This rally culminated in a new all-time high of $3.65—a milestone that had been seven years in the making. However, the rally was short-lived.

On July 18, data revealed that XRP whales moved 660 million tokens to exchanges. Following this activity, XRP’s price retraced, dipping to $3 over the next week. This pattern fits with CryptoQuant’s observations that large exchange inflows typically precede bearish price action.

Context Behind Whale Behavior

Some of the whale movements may have ties to known industry figures. Blockchain investigator ZachXBT recently reported that Ripple co-founder Chris Larsen moved 50 million XRP, a significant portion of which ended up on crypto exchanges. ZachXBT estimated that the transferred tokens represented around $140 million in value.

Larsen’s movements, combined with other large holders shifting funds, could be contributing to overall market volatility. While not all large transactions lead to immediate selling, the correlation between exchange inflows and price pullbacks has been noted in several instances.

Exchange Trends and Market Impact

The impact of whale activity isn’t just limited to XRP. Broader market data shows that whale reactivation is occurring across other cryptocurrencies as well. A recent example includes a long-dormant Bitcoin wallet that moved 3,000 BTC worth over $349 million after 10 years of inactivity. These movements are becoming more common amid renewed bullish sentiment and increased trading volumes across major assets.

In XRP’s case, one specific exchange may play a notable role: Upbit. Moreno mentioned that XRP reserves on Upbit have historically been a factor in price trends. For example, when exchange reserves declined last year, coinciding with U.S. President Donald Trump’s reelection, XRP’s price surged.

This inverse relationship between exchange reserves and price performance highlights the importance of tracking where whales move their assets. Reduced reserves suggest fewer tokens are available for immediate sale, potentially supporting higher prices. On the other hand, increasing reserves may indicate that whales are preparing to offload their holdings.

What Comes Next?

For investors and traders, the recent whale activity raises key questions about XRP’s near-term future. While the asset has shown strength with a new all-time high in July, the rise in exchange inflows could signal the start of a consolidation phase or even a short-term correction.

At the same time, it’s important to note that whale behavior doesn’t always lead to immediate market shifts. Market sentiment, macroeconomic factors, and broader crypto trends also play roles in determining XRP’s price movements.

As it stands, the CryptoQuant data provides a cautionary signal. Traders may want to monitor exchange inflow metrics closely in the coming weeks, especially if XRP begins testing support levels. If whale selling continues, downward pressure could intensify.

However, if exchange reserves begin to drop again, it may suggest that whales have completed their selling, potentially setting the stage for the next upward move.