The cryptocurrency market concluded the month on a bearish note, with Bitcoin (BTC) dropping below $84,000 and XRP falling to $1.98. Although both tokens have since recovered to above $85,000 and $2, the possibility of a deeper correction looms over the rally. The increase in trading volume has led to a surge in selling pressure, prompting questions about whether the XRP Army can maintain the rally above the critical support level of $2.
XRP recently witnessed an unusual pattern of whale behavior. The number of major whale wallets has decreased, but the remaining large players are quietly accumulating their largest holdings in seven years. This suggests a phase of consolidation among deep-pocketed investors rather than a mass exodus.
Data from Santiment reveals a 20.6% decrease in XRP wallets holding 100M+ XRP over the past eight weeks, with 569 whale and shark wallets disappearing during this period. Despite the decline in the number of whales, the total amount of XRP held by these large wallets has reached a seven-year high of 48 billion XRP. This trend indicates that the remaining whales are absorbing supply from those exiting the market.
The decline in the whale count can be attributed to various factors such as profit-taking after significant rallies, redistribution to custodial or exchange-controlled addresses, and consolidation of dormant wallets. Although this trend may initially appear bearish, the data suggests that it could be more bullish in the long run.
The weekly price action of XRP indicates ongoing selling pressure, with the Relative Strength Index (RSI) approaching the lower threshold. The weekly Chaikin Money Flow (CMF) has dropped below 0, signaling a significant outflow of capital from the platform. As a result, the XRP price is expected to enter a support range between $1.97 and $1.92. Despite this, there is a strong possibility that the bulls will defend this range until the end of the year.
In conclusion, while the shrinking whale count may raise concerns among traders, the surge in total whale-held supply suggests that stronger hands are consolidating their positions. If accumulation continues at current levels, the XRP price could stabilize above key support levels and potentially see a relief bounce. However, failure to sustain whale demand may expose the price to a deeper pullback before a sustainable recovery can take place.
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