XRP Rally Sparks Sell-Off as Top Wallets Cash Out Daily

The recent surge surrounding XRP has captured attention across the crypto market, but behind the scenes, major holders appear to be taking profits. As XRP regained upward momentum, data now shows that some of its largest wallet addresses have been actively divesting millions in tokens per day, contributing to an increase in selling pressure.

Over the past week, XRP’s price activity indicates a short-term rebound. However, an in-depth analysis of blockchain behavior and trader activity reveals that top-ranking wallets—often described as “smart money” investors—are exiting positions despite the rally. These wallets, known to have accumulated XRP at relatively low levels, have begun systematically offloading substantial amounts of the token.

This trend is particularly visible through on-chain analytical data, which tracks the behavior of wallets ranked in the top 200 holders. According to the data, these wallets reduced their cumulative holdings by as much as $68.5 million in XRP each day over the last week. This selling activity comes even as the token shows signs of strengthening from recent lows.

Such a sustained offloading by informed investors suggests caution. Despite upward market movements, tactical sell-offs by large holders can limit potential gains and suppress bullish momentum from retail buyers. Analysts are now warning that unless broader buying support emerges, XRP could face a significant pullback.

Technically, XRP is forming signs of weakness. Its recent attempt to hold above key resistance levels is facing strong headwinds. Some market watchers believe that the token could decline by up to 35%, with the support range of $1.35 to $1.60 emerging as a possible target if selling pressure continues.

Market sentiment plays a critical role here. When major players begin taking profits, it can act as a psychological signal to others to follow suit. This often triggers a snowball effect where general investors move to secure gains before prices retreat, amplifying selling volume. The pattern being observed now in XRP wallets aligns with similar historical sell-offs that preceded corrections in other crypto assets.

It’s also worth noting that large-scale profit-taking coincides with a period of increased market uncertainty. Regulatory scrutiny, shifting macroeconomic conditions, and evolving demand trends are all overarching factors influencing investor behavior. For XRP, which has had its own share of legal and regulatory hurdles in recent years, these dynamics create an environment where caution prevails—even amid short-term bullishness.

Traders and investors should keep an eye on wallet activity across the XRP ledger. Behavior from leading addresses often mimics insider movements in traditional finance, where timely exit strategies by major stakeholders reflect deeper knowledge of market conditions. In this case, the daily unloading of tens of millions of tokens speaks volumes about the sentiment among those holding significant positions.

Even though XRP has shown resilience and the capacity to recover quickly from previous dips, the weight of consistent sell pressure from its biggest earners puts the burden on bullish market participants to prop up momentum. Buyers will need to step in with conviction to neutralize this wave of distribution and sustain the rally.

Related: Expert Advice: Sell XRP If You’re Confused

Until then, XRP remains at a crossroads—caught between the energy of a rally and the shadow of large-scale sell-offs. For stakeholders anticipating long-term growth, cautious optimism may be the best approach as they navigate a landscape shaped by both speculative excitement and strategic unloading.