XRP Whale Activity Slows Down as Wallet Creation Hits Eight-Month Peak: Is the Market Bottoming Out?
Recent on-chain developments suggest that XRP may be approaching a critical inflection point. As large holders—commonly referred to as whales—pull back on their selling activity, the network is simultaneously experiencing a surge in wallet creation. Together, these dynamics signal a potential transition from prolonged bearish pressure to a more stable phase for the altcoin.
In the past 48 hours alone, over 21,000 new XRP wallets have been added to the network. This level of growth hasn’t been observed in the last eight months, indicating heightened user activity and interest. Simultaneously, transaction volume on the XRP Ledger’s native decentralized exchange (DEX) reached a new high, with 954,000 trades executed in a single day—making it the most active session in recent months.
Interestingly, this spike in network activity occurred during a period of notable price weakness. XRP briefly dipped to $2.06—its lowest point since July 4—before rebounding to $2.40, marking a 16% recovery from the monthly low. Despite this uptick, the asset remains in a fragile position, with broader market sentiment still leaning toward caution.
The divergence between increased on-chain activity and falling prices has raised eyebrows among analysts. One prevailing theory suggests that the heightened DEX transactions may be driven by arbitrage strategies, whale distribution, or algorithmic trading rather than organic retail accumulation. This disconnect implies that while the network appears healthy on the surface, the driving forces behind the activity are more complex.
Adding weight to the theory of a potential bottoming process is the behavior of whale wallets. After months of aggressive selling—amounting to more than $650 million in outflows over the last 90 days—the trend has now shifted to a neutral stance. This stabilization implies that large investors may be stepping back from selling, possibly in anticipation of a price consolidation or reversal.
On the derivatives side, XRP has displayed relative strength compared to its peers. According to futures market data, Bitcoin and Ethereum have seen considerable declines in open interest—dropping to $59.87 million and $148.69 million, respectively. In contrast, XRP’s open interest has remained comparatively stable, suggesting that traders are rotating capital into the asset amid weakness in other major coins.
One market analyst highlighted this trend, noting that traders are using XRP’s price dips as buying opportunities. This behavior contrasts with the broader risk-off sentiment currently dominating the cryptocurrency market, especially in Bitcoin and Ethereum positions.
While these on-chain and derivatives indicators are encouraging, confirmation through price action is still required to validate a true market bottom. XRP remains in a downtrend since peaking at $3.66 on July 18. A sustained break above key resistance levels would be a stronger signal of bullish reversal.
In addition to these developments, a recent legal ruling in India recognized XRP as a property asset, potentially opening the doors for more institutional interest and legal clarity in one of the world’s largest emerging markets. Regulatory clarity often plays a pivotal role in shaping investor confidence and market participation.
Beyond the metrics, the broader macro environment also plays a role in XRP’s trajectory. With global financial markets navigating inflation concerns, regulatory shifts, and changing interest rates, digital assets like XRP remain sensitive to external pressures. Any major macroeconomic shift could either accelerate or stall the current stabilization process.
Furthermore, XRP’s ecosystem development continues to expand. The XRP Ledger is seeing increased developer activity, with new decentralized applications (dApps) and tokenized assets being launched. This technical evolution supports long-term fundamentals and could attract more users and capital to the network.
Investors should also keep an eye on Ripple’s ongoing legal battles and regulatory engagements, especially in jurisdictions like the U.S., where the outcome could greatly influence XRP’s accessibility and classification. Any positive resolution could act as a catalyst for renewed market confidence.
In conclusion, while XRP’s current price action remains cautious, a confluence of on-chain data, whale behavior, and derivatives market trends suggest that the asset may be entering a consolidation phase. The combination of slowing whale outflows, record-breaking wallet creation, and steady futures interest paints a picture of a market testing its bottom. However, traders and investors should remain vigilant and await stronger confirmation through price movement before assuming the start of a sustained uptrend.