XRP Exchange Inflows Rise 10%—Why Did Whales Deposit $3.9 Billion?

▲ XRP (XRP) / ChatGPT-generated image

XRP is continuing its price rebound, but exchange inflows have surged by more than 10%, raising red flags over a potential wave of selling pressure.

According to cryptocurrency media outlet U.Today on February 26 (local time), on-chain data analytics platform CryptoQuant reported that XRP balances on exchanges jumped 10.58% over the past 24 hours. Such large-scale asset movements during a price upswing suggest that investors are depositing tokens to exchanges to realize profits. As strong downward pressure builds that could dampen the rally, market tension is rising.

The amount of XRP flowing into exchanges totaled approximately 2.7789 billion XRP (about $3.98 billion). The 7.29% increase in exchange reserves in just one day is an unusual phenomenon, indicating that large holdings previously kept in private wallets have shifted into a sell-ready state. Generally, an increase in exchange reserves is interpreted as a precursor to large-scale liquidations or selling activity, amplifying price volatility.

Market analysts say this sharp spike in indicators clearly reflects a shift in investor sentiment. Although XRP remains in bullish territory, holders appear to be focusing more on liquidating assets in preparation for a potential correction rather than anticipating further gains. The share of circulating XRP held on exchanges has also risen by 7.22%, presenting a stark contrast to an accumulation phase characterized by withdrawals to off-exchange wallets.

Whether XRP’s current rebound can be sustained depends on whether on-chain selling pressure is relieved. If exchange-held supplies continue to pile up without being absorbed, even minor negative developments could trigger price weakness, creating a fragile structure. Conversely, if this large-scale inflow merely reflects whale position adjustments and buying demand absorbs the supply, it could establish a strong support level and pave the way for a new breakout.

The contrarian indicator appearing for XRP amid a broader recovery in crypto market sentiment calls for caution among investors. The future direction of the price will likely depend on whether the large exchange deposits translate into actual selling pressure or remain a temporary movement. XRP holders should closely monitor real-time on-chain data changes and prepare for periods of heightened volatility.

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