The Trump rally causes XRP whales to dump heavily

The previous two weeks have seen dramatic price volatility for XRP, keeping traders on edge. The token fell below $2 before recovering to $2.8 in a few days.

This intriguing price pattern reflects the overall crypto market, which plummeted in February before rebounding in early March. Trump's hints of a US crypto reserve spurred this rebound. On-chain data suggests that major holders sold out dramatically after the rise.

XRP Rises After Trump Crypto Announcement

On Sunday, March 2, Donald Trump's surprising statement boosted XRP. The US president proposed a US Crypto Strategic Reserve of XRP, Bitcoin, Ethereum, Solana, and Cardano. Global crypto purchasing exploded with the potential of government-backed crypto reserves. XRP saw a 30% intraday spike following Trump's remarks, coming close to $3.00 again.

However, the joy was brief. Sell orders flooded the market a day after the news, causing XRP to lose some gains. After hitting over $2.8 during the Trump surge, the price fell 10%. The asset returned to mid-$2 on Tuesday.

Whale investors, who hold enormous stakes, sold record quantities of the coin after the surge, according to on-chain statistics. Crypto market researcher Miles Deutscher made a harsh statement on X (previously Twitter) using CryptoQuant data.

Altcoin Distribution Phase

Early investors pay out in droves after a significant rise during a distribution phase. Early investors in XRP acquired the coin during its multi-year bear slump beneath $0.5. The cryptocurrency rose over 500% from $0.55 in early November to nearly $3 by January 2025, fueled by momentum since late 2024.

The data above shows whales have been selling for a while and continue to do so after the Trump rise. In early March, CryptoQuant's graphic indicates negative whale flows of over 180 million XRP, the largest in years.

Interesting, exchange data reveals a simultaneous increase in trading platform supply. In recent days, Binance's XRP #USCryptoReserv