Large amounts of XRP transfers from prominent holders, as observed by CryptoQuant, suggest a possible market correction for XRP.
In the world of cryptocurrencies, the movements of large investors, known as whales, can significantly impact prices. Recently, there has been a surge in XRP whale activity on exchanges, which is often seen as a potential warning sign for short-term price drops.
According to CryptoQuant Head of Research, Julio Moreno, this increased whale activity aligns with historical patterns where whale selling pressure tends to correlate with XRP price declines. This viewpoint is supported by recent on-chain data and observed trends.
In August 2025, whales have been selling off their holdings, as evidenced by deep negative net whale flows on the XRPL Whale Flow metric, indicating accelerated large wallet sell-offs at the start of the month. This selling pressure was further demonstrated earlier in 2025 when significant whale distribution coincided with XRP’s price dropping from $3.40 to around $1.60.
A sharp increase in the number of whale transactions sending XRP to exchanges—over 51,000 on July 31 and still above 38,000 by August 4—suggests heightened selling risk. However, it's important to note that whale activity is nuanced. Some whales also move XRP to cold storage, signaling long-term accumulation and confidence, which can indicate bullish sentiment.
Despite these sell-offs worth over $1.2 billion, retail buying and accumulation have countered downward pressure to keep XRP above $3. Recent whale accumulation outside exchanges, such as moving hundreds of millions of XRP to unknown wallets, suggests some whales are preparing for long-term holdings rather than immediate selling.
Technical analysis and market speculation suggest a potential upward price movement toward $4-$6, fueled by whale accumulation and ETF hopes. This shows that whale sell-offs are not the sole price driver.
In summary, increased XRP whale activity on exchanges is widely viewed as a warning sign for potential short-term price drops, consistent with CryptoQuant's Julio Moreno's viewpoint. However, the broader context of whale movements (to both exchanges and cold wallets) and retail demand can moderate or offset this effect.
Sources:
- CryptoQuant
- ZachXBT
- The Enigma Trader
- CoinGecko
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