- On-chain data shows major XRP holders distributing tokens, echoing past patterns that preceded corrections.
- Smaller traders remain bullish, with high funding rates and $2.9B in futures open interest signaling leveraged long positions.
- Split behavior between whale exits and retail/institutional demand sets the stage for sharp swings in XRP’s price.
XRP is entering a critical phase as blockchain data reveals that some of its largest holders are moving tokens out of long-term storage. According to analysis shared by CryptoQuant contributor Maartunn, whale activity on the XRP Ledger has turned negative, a sign that these players are distributing their holdings rather than accumulating.
This pattern is not new. Earlier in 2025, a similar stretch of sustained selling by major wallets coincided with a local market peak and was followed by a sharp pullback. Recent flows indicate that the same scenario may be unfolding again, even as prices remain supported by retail enthusiasm.
Also Read: Here’s How XRP Will Hit 4,761, But Not Exactly What You Think
🚨XRP Whales are selling heavily
It’s clear distribution.
On-chain data tells the story.
In data, we trust. pic.twitter.com/MoMk1Fx4Lg
— Maartunn (@JA_Maartun) August 27, 2025
Retail Traders Keep the Rally Alive
Despite whale exits, sentiment in the derivatives market points to optimism among smaller traders. Data from Coinalyze shows XRP’s funding rate sitting at 0.0114, with projected levels moving even higher at 0.0159. Elevated funding rates typically mean traders are paying to maintain long positions, reflecting a belief in continued upside.
At the same time, open interest in XRP futures has grown to nearly $2.9 billion, evidence that leveraged trading is expanding. This surge has been echoed on major exchanges, where institutional participation in XRP contracts is gaining traction.
Institutional Momentum Builds
XRP’s futures market has quietly become one of the fastest-growing segments of the crypto derivatives landscape. Earlier, open interest on the Chicago Mercantile Exchange (CME) crossed the $1 billion mark as reported by 36crypto, making it the quickest crypto contract to reach that milestone.
Analysts say this highlights how traditional finance is warming up to Ripple’s token, especially after the legal clarity provided by Ripple’s favorable outcome in its long-running SEC battle.
Rising Volatility on the Horizon
The market now finds itself split: whales are lightening their positions while retail traders and some institutions continue to double down. Historically, this combination often produces heightened volatility, since leveraged optimism from smaller traders can struggle to absorb the steady outflows from larger holders.
If demand remains strong, XRP could extend its rally and retest previous highs. However, should whale distribution accelerate without enough fresh inflows, the market could face another sharp correction similar to those seen in past cycles.
Also Read: Institutional Demand for Spot XRP ETF Is Highly Underestimated – Nate Geraci Confirms
