Recently, Ripple unexpectedly transferred 300 million XRP to an unidentified wallet, followed by an additional 70 million tokens being circulated through anonymous addresses. The total value of this 'whale' scale transaction chain amounts to 782 million USD, immediately attracting strong attention from the global cryptocurrency community.
At the time of writing, XRP is trading at $2.32, recording a 7.67% increase in the past 24 hours.
Such massive asset movements are often indicators of strong volatility phases or deliberate accumulation processes, making investors—from individuals to institutions—especially interested in market reactions in the upcoming sessions.
Are XRP investors quietly 'accumulating'?
On-chain data shows that at the time of writing, the inflow of funds into exchanges reached 122.62 million USD, while the outflow was 116.44 million USD — creating a slight positive balance. This discrepancy, though not large, still reflects a cautiously positive sentiment from investors.
Although a strong buying wave has yet to emerge, the stable inflow of funds amid rising prices suggests that investors are 'reserving' early for potential growth in the near future.
Notably, XRP's Network Value to Transaction (NVT) ratio has fallen sharply by 57.13% in the past 24 hours, down to 118.24. The decline of this metric indicates that trading volume is increasing faster than market capitalization growth — a signal that network usage activity is improving and becoming healthier.
This trend aligns with the increasing flow of funds within the XRP ecosystem, indicating that the asset's value is supported by sustainable fundamental factors rather than mere speculation.
Preparing for a rebound?
Although XRP's price shows signs of recovery, network activity is moving in the opposite direction. Specifically, the number of daily active addresses has decreased to only 17,200, while the total number of transactions has also declined, currently at around 302,000. This decline in interaction raises questions about the sustainability of the current upward trend.
Typically, when the price rises but on-chain indicators plummet, it may reflect a short-term speculative trend rather than a solid growth foundation from the user community.
Unless network interaction levels improve soon, XRP's upward momentum may be difficult to sustain in the medium term.
Additionally, XRP's MVRV Long/Short Difference is currently at -24.72%, indicating that the majority of long-term investors are currently suffering losses on their investments. Historically, such deep negative levels often coincide with bottoming phases — times when accumulation activity begins to increase again. Therefore, from a long-term investor's perspective, XRP is currently undervalued relative to its real value.
Buying pressure is accumulating
On May 8th, the market witnessed a strong wave of liquidations from short sellers, with a total value reaching 7.54 million USD — over five times the 1.57 million USD in Long positions liquidated.
This stark discrepancy reflects a short-term 'price squeeze' (mini short squeeze), as the bears are unexpectedly forced into a defensive position due to XRP's sudden upward movement. As short positions are sequentially forcefully closed, the technical buying pressure further drives the price up, creating a reinforcing loop for the upward trend.
The liquidation of short positions helps push the price higher, reinforcing the current upward momentum, as the forced buying from liquidated sellers adds to the buying pressure.
If this phenomenon continues, XRP could quickly approach the next resistance area.
XRP is currently trading just below the upper boundary of the downtrend channel, around $2.32, with key resistance at $2.40.
If this threshold is successfully broken, the price could be pushed up to the $3 mark, marking a complete reversal of the months-long downtrend.
However, the solid support level at $2.06 (the middle line of the channel) remains intact, providing the bulls with room to protect the trend if the upward momentum slows down. Thus, XRP is facing a decisive moment in the short term.
Will XRP break out?
The combination of factors such as active movements from whales, waves of liquidation of sell orders, and improvements in valuation metrics is creating accumulation pressure, pushing XRP close to a critical breakout threshold.
While the level of network interaction has somewhat weakened — a factor that could slow short-term growth — if XRP can break through the $2.40 threshold, the market may witness a strong growth wave being activated.
The upcoming trading sessions will play a crucial role in determining whether this is the starting point for a sustainable upward trend or merely a temporary bounce before a reversal.
Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do thorough research before making decisions. We are not responsible for your investment decisions.
