Key Takeaways
XRP whales sold heavily while retailers accumulated, pushing Buy-Sell Delta positive. With Funding Rates steady, XRP now balances between $3.5 upside and $2.50 risk.
Ripple [XRP] has traded in a narrow band since its $3.5 local high two weeks ago, consolidating between $2.80 and $3.10.
Amid the market slowdown, whales pulled back and began aggressively closing their positions, exiting the market with noticeable force.
XRP whale in distribution phase
According to analyst Maartunn, XRP whales entered a distribution phase, with Whale Flow dropping -40 million on the 90DMA.
Source: X
In fact, on the 26th of August, Whale to Exchange Transactions surged to a three-week high of 37.3k before cooling down to 1,000 at press time.
Source: CryptoQuant
Such a spike in whale activity, especially on the sell side, reflects strong bearish sentiment from the group.
In fact, the altcoin recorded positive Spot Netflow for three consecutive days. At press time, XRP had a Netflow of $3.99 million, suggesting higher exchange inflows compared to outflows, a clear selling signal.
Source: CoinGlass
Typically, increased selling pressure from whales causes intense downward pressure, often a prelude to lower prices.
Retailers taking a different path
Surprisingly, while XRP whales were aggressively offloading, retailers were accumulating the altcoin at a rapid pace.
According to Coinalyze, Buy-Sell Delta stayed positive for three days, with ~$372 million Buy Volume vs ~$350 million Sell Volume. This added up to an $18 million Buy-Sell Delta, clear evidence of accumulation.
Source: Coinalyze
Derivatives stay bullish
In derivatives, the Taker Buy Sell Ratio climbed back above 1 (1.01), as of writing, its first time in three weeks.
Source: CryptoQuant
At the same time, Funding Rates stayed positive for thirty straight days, signaling persistent bullish sentiment in the futures market.
Naturally, with buyers displacing sellers in derivatives, demand for longs strengthened as traders chased prices higher.
Source: CryptoQuant
XRP at crossroads!
According to AMBCrypto’s analysis, XRP traded within a thin margin as whales and retail traders battle for market control.
And, retailers have managed to absorb some pressure from whales, avoiding a massive downward slip. Such market conditions leave XRP at a crossroads.
For an upside breakout, whale distribution must ease while retail accumulation continues. In that case, XRP could clear the $2.80–$3.10 range and retest $3.5.
However, if whale distribution outweighs retail demand and futures participation, prices could spiral down to $2.50.
