XRP Whales Spark Bearish Outlook Amid $1.9B Sell-Off

XRP is facing heightened volatility as major whale investors have recently unloaded over $1.9 billion worth of the digital asset, triggering broader concerns about the token’s short-term outlook. These significant moves could indicate a bearish trend, especially if large-scale accumulation by key players does not resume soon.

Recent on-chain data reveals that between March and early June, wallets holding between 10 million and 100 million XRP collectively offloaded their holdings by approximately 1.2 billion tokens. This mass exodus of XRP represents a striking development in the asset’s distribution patterns. With an average market value hovering around $0.52 during the sell-off period, the total size of the sell-off is estimated at nearly $624 million.

Even more substantial was the behavior of the largest cohort of XRP holders — wallets with over 100 million tokens. Over the same timeframe, this group liquidated around 480 million tokens, reducing their overall footprint significantly. Analysts believe these continued divestures may undermine momentum and trust within the XRP investor community.

According to recent insights, XRP must see daily net inflows of more than 5 million tokens into whale wallets to regain structural strength in the near term. Failing this, the situation may remain precarious, keeping the asset in bearish territory. As accumulation slows and outflows continue, the chances of a broader downturn increase.

Adding to the pressure is XRP’s declining performance in user engagement. The network’s daily active addresses metric, which serves as a barometer of real user demand and transaction volume, has notably decreased in June. Such a reduction often precedes and reinforces downward price trends, as less on-chain activity typically signals fading trader interest.

Technical indicators also suggest caution. XRP’s Relative Strength Index (RSI), a key momentum tool, has recently dipped below the neutral 50 threshold and now hovers around 39. This level suggests that bearish sentiment is outweighing buying pressure in the current market. The RSI trend pairs with whale activity, reinforcing concerns voiced by analysts that the asset could face deeper corrections if the current conditions persist.

In particular, one market analyst has highlighted a potential decline of up to 30% from current levels if structural weaknesses endure. Such a downturn would push XRP toward the $0.36 range, testing long-standing support zones that have historically offered a floor during past sell-offs. While this level may offer some temporary relief, it doesn’t necessarily reverse the larger negative momentum that’s building.

Despite the recent sell-off and growing bearish signs, XRP remains one of the most closely watched digital currencies, largely due to the ongoing legal and regulatory scenarios surrounding its issuing company. That attention could act as a double-edged sword — driving volatility while also presenting potential upside should sentiment shift or legal developments prove favorable.

For now, the market focus remains on whether significant whale accumulation picks up again in the coming weeks. Traders and analysts alike are closely monitoring large wallet activity to gauge shifts in confidence, while also studying network participation metrics for signs of renewed user interest. In the absence of these elements, XRP may continue facing headwinds throughout the short- to medium-term outlook.

Related: XRP Price: $12M Max Pain for Bears

The long-term trajectory of XRP will depend heavily on renewed investor confidence, stronger ecosystem engagement, and macro crypto market sentiment. Until those factors align, caution remains warranted in navigating the current trend.