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XRP jumped over 20% in the first half of May, and on-chain data points to a potential turning point: whale wallets have all but paused their heavy sell-offs. After months of seeing large holders offload, this slowdown in selling could lay the foundation for another sustained rally.
In early 2025, CryptoQuant’s data shows whale net flows plunged deep into negative territory as big investors cashed out, driving XRP down from around $3.38 to $1.60 in April—a 50% drop. Their selling pressure kept the token from sustaining any climb above key resistance levels.
But a 30-day moving average of whale flows now reveals rising net flows, indicating that the torrent of sales has slowed dramatically. Analyst Kripto Mevsimi notes that flow reversals often herald “base-building phases,” where price stabilizes before taking off again. While this isn’t yet a full reversal of those earlier outflows, a resilient price amid ebbing whale pressure is an encouraging sign.
Cautious Optimism
Other indicators back up this cautious optimism. Daily spot trading volume has more than doubled, topping $10 billion, which suggests renewed demand among smaller traders. Community sentiment is also strongly positive, with roughly 88% of investors on CoinMarketCap expressing bullish views on XRP. On top of that, Santiment reports an 11% increase in wallets holding XRP so far in 2025—evidence of fresh interest.
Analyst “Dom” adds another layer, pointing out that liquidity, not market cap, is the real driver of XRP’s price moves. His models show that just $61 million in net inflows could boost XRP’s market cap by $16.6 billion, underlining how sensitive XRP is to shifts in buying and selling pressure. On the flip side, the same amount of outflows could dent its market cap just as rapidly.
Looking Ahead: With whale selling easing, volumes surging, and new money flowing in, XRP could be poised for its next leg up—provided liquidity continues to tilt in buyers’ favor.
