XRP briefly surged past $1.7 before stabilizing near $1.4. While the token appears to have hit a wall after a massive rally, whale withdrawals from Binance have surged to their highest level in six months.
According to the latest findings by CryptoQuant analyst Darkfost, more than 231 million XRP have moved off the exchange by large holders.
Whale Accumulation
The withdrawals totaled more than $335 million in a single day, far above the 90-day average of roughly $40 million. Darkfost described the move as both sudden and powerful compared with the recent trend, while pointing to a significant change in behavior among large XRP holders.
The surge in whale outflows comes as the crypto asset’s market capitalization increased by $25 billion over the past week, during which the token gained more than 40%.
According to the analyst, this trend has potentially helped fuel XRP’s strong market performance and renewed attention. If this accumulation trend continues, Darkfost said the asset could potentially test the $2 level within a relatively short period.
This week, Ali Martinez flagged a major jump in XRP network activity, after active addresses rose to 356,070 from 47,180. That represents a surge of well over 654%, a level of activity that typically suggests increased participation and can coincide with sharper price swings.
Trouble Ahead?
But the derivatives market showed short-term pressure for XRP after the token cleared liquidity around resistance and moved back toward a major support zone. Long liquidations were recorded at approximately $4.66 million, a 31.82% daily increase, while short liquidations stood near $1.13 million after rising 61.61%.
Despite the stronger percentage increase in short liquidations, the total volume of long liquidations is nearly four times larger. This indicates that the pullback following the recent rally forced a significant number of leveraged long positions out of the market, meaning that the sell-off was driven by both spot selling and the liquidation of leveraged positions.
While this confirms the current bearish pressure, the clearing of leveraged positions could eventually provide room for a healthier rebound, CryptoQuant explained.
Meanwhile, XRP’s Money Flow Index (MFI) has fallen to 35.89 from around 60, which points to a significant weakening in the buying pressure that supported the earlier price move. However, the MFI remains above 20, which means that the crypto asset has not yet entered technically oversold territory and could still face further downside.
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