In the first half of May, the price of XRP increased by more than 20%. Recent on-chain data indicates a significant change in the behavior of XRP whales — large wallets holding substantial amounts of the token.
After months of active selling, whale wallets have begun to slow their sell-offs. This change instills hope for a new potential rally for XRP.
XRP whales are halting their sell-offs, signaling a new phase in price movement.
According to CryptoQuant, XRP whales aggressively sold off their assets in early 2025, leading to a significant drop in net flows into negative territory.
This indicates that large investors have taken advantage of high liquidity and price momentum to exit positions. Their selling pressure prevented XRP from rising above $3.38 and caused its decline of more than 50%, to $1.60 in April.
However, recent data suggests a change in momentum. Kripto Mevsimi's analysis shows that large-scale sell-offs have nearly ceased. The 30-day moving average chart of Whale Flow indicates an upward trend in net flow columns, suggesting a significant reduction in selling pressure.
Although this is not yet a full reversal, Mevsimi remains optimistic.
"Whale flow reversals often precede sustainable recoveries. This change may be an early signal of the base formation phase. Combined with a stable price, this flow inflection is worth close attention," said Mevsimi.
In addition to on-chain metrics, other market indicators also look promising. According to CoinMarketCap, the daily spot trading volume of XRP has more than doubled, exceeding $10 billion, reflecting growing demand from investors.
It is important to note that community sentiment on CoinMarketCap is high. About 88% of investors expressed a positive outlook on XRP.
Furthermore, Santiment data indicates an 11% increase in the number of wallets holding XRP just in 2025 — evidence of growing community interest. Santiment explained this growing interest by the approval of bill 594 in Missouri, which eliminates capital gains tax on cryptocurrencies, including Bitcoin and XRP.
"If passed, it would allow people in the state to deduct all capital gains taxes from profits made on such assets as Bitcoin and XRP. This means that if someone makes money trading these assets, they will not be required to pay taxes on those profits — and this is important news for crypto investors in the U.S.," said XRP Mining.
Analysts emphasize liquidity as a key factor in the price movement of XRP.
Analyst Dom emphasized the importance of liquidity in a recent post on X. He noted that it is liquidity, rather than just market capitalization, that determines XRP's breakout potential.
His research shows that only $61 million in net inflows could increase the market capitalization of XRP by $16.6 billion. This highlights how sensitive XRP is to changes in liquidity. With increasing trading volume and decreasing selling pressure from whales, XRP appears well-positioned to attract new capital.
However, if Dom's analysis is accurate, it also serves as a warning. The market capitalization of XRP could drop just as quickly if net outflows occur in only tens of millions of dollars.#BinanceSquare #Write2Earn #TradeStories #Binance #crypto $XRP