XRP (CRYPTO: XRP) whale outflows on Binance have plunged to their lowest level since October 2021, signaling weakening institutional-sized buying activity.
Outflows dropped to a 90-day moving average of just $49.7 million, marking a rough 99% decline from the $3.5 billion recorded in February 202 when prices peaked at $3.30.
During that period, whale outflows frequently exceeded $10 billion daily, reflecting substantial large-holder activity.
Whale participation has steadily declined as XRP prices retreated from their highs.
The data suggests major investors may be waiting for more attractive entry points before resuming accumulation.
Why Are XRP Whales Sidelined?
CryptoQuant noted that XRP has demonstrated relative resilience throughout the bear market, potentially preventing whales from finding attractive accumulation opportunities.
During the 2022 and 2023 downturns, lower prices attracted substantial whale buying activity.
However, similar accumulation patterns have yet to emerge in the current cycle.
The decline in whale outflows suggests weakening demand from large investors, potentially limiting XRP’s ability to sustain a strong recovery.
Could Declining Whale Activity Signal A Bottom?
Historically, periods of extremely low trading activity and investor interest have sometimes preceded major trend reversals.
While the absence of whale accumulation could weigh on XRP’s longer-term outlook, exceptionally low activity may also signal fading selling pressure and market exhaustion.
A sustained recovery in whale outflows could indicate renewed accumulation and provide stronger support for XRP’s next bullish move.
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