Understanding Today’s Crash in XRP Prices: Ripple Whales Behind the Move Below $2.5?

Ripple’s (XRP) rebound above $2.5 just days after dropping below $1.90 was rather short-lived as it currently trades near $2.4. Data now suggests massive whale movements toward Binance confirm profit-taking and panic-selling ￰0￱ Holders Unload Their Bags Since the start of October, XRP whales have shown a notable change in behavior amidst growing selling ￰1￱ from the Whale to Exchange Flow chart for Binance, shared by CryptoQuant, found a sharp rise in whale deposits beginning October 1st, which maintained steady momentum until October ￰2￱ inflow reached its highest level on October 11th, with Whale to Exchange Transactions surging to 43,000. This is a clear indication of significant XRP transfers to centralized ￰3￱ large-scale movements typically mean that whales are preparing to liquidate holdings, realize profits, or mitigate risk in the backdrop of market ￰4￱ on-chain activity is closely in line with XRP’s price performance during the same ￰5￱ the whale deposits accelerated, XRP’s price experienced a steep decline as it dropped from above 3 to around ￰6￱ correlation between increased exchange inflows and the falling price strongly supports the view that increased whale activity on Binance contributed to the mounting selling pressure throughout the first half of ￰7￱ were not the only cohort driving XRP’s sell pressure in ￰8￱ revealed that smaller investors also played a crucial role in the market ￰9￱ month recorded a steady uptick in XRP transfers to Binance, especially in the ~1,000 XRP transaction group.

Additionally, there were occasional inflows from larger 100K and 1M XRP ￰10￱ inflows reached their highest levels since last June and coincided with XRP’s price decline from near $3.0 to the $2.3-$2.6 range by ￰11￱ surge in small tranche deposits points to increased activity from retail investors or, potentially, the splitting of larger holdings into smaller batches before ￰12￱ a pattern reflects a broader distribution phase, where selling pressure originates from a wide base of ￰13￱ Pessimism Attention has now turned to how smaller traders are responding to the crypto asset’s turbulent price ￰14￱ to Santiment, XRP is currently seeing widespread retail pessimism.

On-chain data revealed that a large portion of the crowd has been selling at a loss, accompanied by a noticeable uptick in fear, uncertainty, and doubt (FUD) across social channels. Historically, such conditions have often preceded bullish reversals, as prices tend to move contrary to retail ￰15￱ traders capitulate or express excessive fear, it often means that market bottoms are near and that stronger hands are accumulating.