XRP whale inflows hit a two-year low! Analysis of on-chain data anomalies on XRPL and the reasons behind XRP price decline

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January 16 News, XRP (Ripple) has recently come under pressure. On-chain data shows that transfers of XRP from whales to mainstream trading platforms have fallen to their lowest level in nearly two years. Despite signs of easing selling pressure, XRP's price has retreated to a near three-day low, sparking ongoing discussions in the market about “whale movements” and “why XRP is falling.”

Monitoring data from the XRPL chain indicates a significant decline in transfer activity from large addresses. CryptoQuant analyst Arab Chain pointed out that the number of tokens transferred by XRP whales to trading platforms once dropped to approximately 48 million, then slightly rebounded to 56.1 million. Overall, it remains in a low range not seen since 2021. This indicator is often used as an important reference to assess whether whales are preparing to sell.

In most cases, when large amounts of XRP are transferred to trading platforms, it suggests potential selling pressure is rising; conversely, reduced whale inflows imply a weakening market sell-off sentiment. From this perspective, the current XRPL on-chain structure is not overly pessimistic for XRP, with some long-term holders preferring to continue observing or locking in their positions.

However, the price performance has not immediately responded to this positive signal. After a short-term rebound, XRP's price weakened again, currently at $2.07 at press time, down about 1.45% for the day, with a nearly one-week decline of 2.65%. But over a longer cycle, XRP has still gained about 7% in the past month, indicating that the medium-term trend has not been fully broken.

Market-wide impacts are also noteworthy. Over the past 24 hours, the total cryptocurrency market cap has fallen by approximately 1.09%, down to around $3.23 trillion. Mainstream assets are also under pressure, reducing XRP's independent movement space. In this environment, even if whale selling pressure decreases, short-term prices remain vulnerable to overall market sentiment.

Historical experience shows that after XRP whale inflows reached similar lows in 2021, a significant rally followed. Whether this pattern will repeat depends on the overall market sentiment improving and subsequent on-chain demand changes. For investors paying attention to XRP price movements, XRPL on-chain data, and whale behavior, the next few days' capital flows will remain a key indicator to watch.

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