Recently, Ripple unexpectedly transferred 300 million XRP to an unidentified wallet, followed by an additional 70 million tokens circulated through anonymous addresses. The total value of this 'whale' transaction chain reached $782 million, immediately attracting significant attention from the global cryptocurrency community.
At the time of writing, XRP is trading at $2.32, recording a 7.67% increase over the past 24 hours.
Such massive asset movements are often indicative of strong volatility phases or intentional accumulation processes, prompting investors—from individuals to institutions—to pay particular attention to market reactions in the upcoming sessions.
Are XRP investors quietly accumulating?
On-chain data shows that at the time of writing, inflows to exchanges reached $122.62 million, while outflows were $116.44 million — creating a slight positive balance. This slight discrepancy, though not large, still reflects a cautious positive sentiment from investors.
Although there has not yet been a strong buying wave, the stable inflow of funds amid rising prices indicates that investors are 'holding their positions' early for potential growth in the near future.
Notably, the Network Value to Transaction (NVT) ratio of XRP has sharply decreased by 57.13% over the past 24 hours, down to 118.24. This drop indicates that trading volume is increasing faster than market capitalization — a signal that network usage activity is improving and becoming healthier.
This trend aligns with the increasing circulation of capital within the XRP ecosystem, indicating that the asset's value is supported by sustainable fundamental factors rather than mere speculation.
Preparing for a surge?
Although XRP's price shows signs of recovery, network activity is going in the opposite direction. Specifically, the number of daily active addresses has dropped to just 17,200, while the total number of transactions has also declined, now around 302,000. This decreasing level of interaction raises questions about the sustainability of the current uptrend.
Typically, when prices rise but on-chain indicators decline, it may reflect a shorter-term speculative trend rather than solid growth on the part of the user community.
Unless network interaction levels improve soon, XRP's upward momentum may be hard to sustain in the medium term.
Additionally, XRP's MVRV Long/Short Difference index stands at -24.72%, indicating that the majority of long-term investors are currently at a loss on their investments. In the past, such deep negative levels have often coincided with bottoming phases — times when accumulation activity starts to increase again. Therefore, from a long-term investor's perspective, XRP is currently undervalued compared to its actual value.
Buying pressure is building up.
On May 8, the market witnessed a significant wave of liquidations from short sellers, with a total value reaching $7.54 million — over five times that of the $1.57 million in Long liquidations.
This stark discrepancy reflects a short-term 'mini short squeeze,' where bears are unexpectedly pushed into a defensive position before XRP's sudden price increase. As short orders are forced to close, technical buying pressure pushes the price even higher, creating a reinforcing loop for the uptrend.
The liquidation of short orders further propels the price higher, reinforcing the current uptrend, as forced buying from liquidated sellers adds additional buying pressure.
If this phenomenon continues, XRP could quickly approach the next resistance zone.
XRP is currently trading just below the upper boundary of the downtrend channel, around $2.32, with a key resistance area at $2.40.
If this breakout succeeds, the price could be pushed up to $3, marking a complete reversal of the multi-month downtrend.
However, a solid support level at $2.06 (the midpoint of the channel) remains intact, giving bulls room to protect the trend if the upward momentum stalls. Therefore, XRP is at a crucial decision point in the short term.
Will XRP break out?
The combination of factors such as active whale participation, a wave of liquidation orders, and improvements in valuation metrics is creating accumulation pressure, pushing XRP close to a significant breakout threshold.
Although the level of network interaction has somewhat weakened — a factor that could slow down short-term gains — if XRP can break through the $2.40 threshold, the market could witness a strong growth wave being activated.
The upcoming trading sessions will play a key role in determining whether this is the starting point for a sustainable uptrend or merely a temporary bounce before a reversal.
Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do their own research before making decisions. We are not responsible for your investment decisions.
