XRP Price Tests Crucial Support as Ripple Coin Flows Shift Gears

Key Insights:

• XRP price is holding above the key $1 level, with analysts watching a breakout toward $1.15 or a breakdown below psychological support.
• XRP crypto whales are pulling more tokens off exchanges, signaling growing long-term accumulation.
• Rising XRP Ledger activity and continued ETF inflows are tightening supply as leveraged positions unwind.

The XRP price has been hovering around the $1 mark for some time now, building up curiosity about its next move. Recent on-chain data reveals some interesting changes among holders which may point to the next major move.

Underneath the choppy market conditions, XRP price may be building up for another directional shift. Whales have been quietly pulling large amounts of Ripple coin from exchanges into their wallets.

The Ripple coin price hovered around $1.05 as of the time of writing. This was after a 2% gain in the last 24 hours, which coincides with accumulation at recent lows.

CryptoQuant data shows Coinbase whale outflows jumped from around 10% to 25.7%. Meanwhile, Binance kept its grip on roughly half of the large withdrawals, with moves above 1 million XRP remaining steady.

XRP Coinbase Daily Outflow by Vaue Share | Source: CryptoQuant

CryptoQuant analyst Amr Taha noted that although the data does not confirm where those coins are ultimately going, it highlights a clear shift.

Large holders are accounting for a growing share of Ripple coin withdrawals on Coinbase. Especially at a time when Binance remains heavily dominated by the same transaction tier.

These transfers to self-custody wallets are often a green flag for the bulls. They point to holders scooping up some XRP crypto at recently discounted prices.

This observation usually underpins long term positioning. Plus, less selling pressure on order books could set up a short squeeze scenario if demand holds.

XRP Ledger Network Activity Jumps amid ETF Inflows Influx

Activity on the XRP Ledger jumped noticeably especially around transaction counts and other key network metrics. This occurred while spot XRP ETFs kept pulling in fresh capital.

These funds absorbed meaningful volume in recent weeks, with several days of net inflows even as the broader crypto market experienced an overall decline.

The network’s daily active addresses (DAA) jumped from 23,000 to about 39,500 addresses in 13 days. A 72% increase within two weeks.

Moreover, the XRP crypto open interest (OI) across major exchanges fell below $150 million. This is a huge drop from $1.3 billion and signifies the disappearance of a large share of leverage positioning that had built up during the previous rally in the XRP price.

Cumulative XRP ETF assets grew, giving institutions easier exposure and steadily absorbing the sell side momentum.

XRP ETF Statistics | Source: XRP Insights

Institutions and retail piled into these products, absorbing tokens and tightening available supply. This combination of whale outflows and ETF buying has investors and traders speculating on an imminent supply shock for XRP.

Analysts Eye Next Move for XRP Price

The XRP price has hovered near $1 after the downside swing in June. It has been testing support around $1.03 and $1.04. Given the prolonged consolidation period, market participants are split on the XRP crypto’s next move.

The Ripple coin has been in a tight range since June 26. It now risks capitulation below $1 if the support fails, but it could also bounce back if sell pressure cools while demand builds up.

XRP Price Action | Source: TradingView

The relative strength index (RSI) has been demonstrating a bullish momentum build-up in the last few days. However, large order book data revealed that whales were still sitting on the sidelines, waiting for the dust to settle.

At least that has been the situation over the last 24 hours on the first day of the month. This underscores existing uncertainty and potential for a resumed selloff.

Nevertheless, data mentioned earlier revealed that whales have been accumulating over the last 2 weeks. Transfers to cold wallets and rising XRP ETF inflows may boost confidence this month.

After all, the XRP price has retested a major support level. However, whether the Ripple coin breaks out or tests lower depends on whether these big holders step back in or if ETF money keeps stacking.

Traders are keenly watching the $1 psychological level closely. A break below it, and bears take control. If it holds, bulls will push the price higher, and the resulting short squeeze narrative could quickly gain steam.

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