What to Know:
- XRP whale transfers to Binance dropped significantly as selling pressure eased.
- CryptoQuant data shows support near $1.08 remains firmly intact.
- XRP stays below McGinley Dynamic despite improving whale activity trends.
CryptoQuant analyst PelinayPA has identified a notable shift in XRP whale behavior as large holders reduce transfers to Binance while the token trades near a key support area. In a recent market update, the analyst revealed that both Whale Flow and Whale Transactions have fallen to 417, suggesting that major investors are no longer increasing selling pressure despite XRP remaining below an important technical resistance level.
Whale Activity Suggests Support Remains Intact
According to PelinayPA, the decline in whale-related exchange activity could be helping XRP maintain stability above a critical support zone. Binance remains one of the largest liquidity hubs for XRP trading, making whale deposits an important metric for evaluating potential selling pressure.
Large transfers to exchanges often indicate that investors are preparing to sell. However, recent on-chain data points to a different trend. Both Whale Flow and Whale Transactions have retreated significantly from the elevated levels recorded throughout May and early June.
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The chart data shared by CryptoQuant shows multiple spikes in whale-to-exchange transfers during those periods. At the same time, XRP declined from the $1.30 to $1.50 range before settling near its current level around $1.12.
Since mid-June, whale transfers have returned to relatively low levels. Consequently, analysts believe a major source of short-term selling pressure has eased. This development may be helping XRP defend its position near an important support area.
According to the analyst, the support zone around $1.08 remains one of the most important levels for traders to monitor. As long as XRP remains above that area and whale inflows stay subdued, downside risks could remain limited.
McGinley Dynamic Still Signals Caution
While whale behavior has become more constructive, technical indicators continue to present a mixed outlook. XRP currently trades below the McGinley Dynamic, an adaptive moving average used to identify trend direction and dynamic support or resistance levels.
The indicator currently sits between $1.15 and $1.16, placing it above XRP’s market price of approximately $1.12. This suggests the broader short-term trend remains weak despite the reduction in whale-related selling activity.
Source: CryptoQuant
According to PelinayPA, XRP must reclaim the McGinley Dynamic to strengthen recovery prospects and confirm improving momentum. A successful move above that level could support a broader recovery toward higher resistance zones.
In conclusion, declining whale transfers indicate that major XRP holders are currently helping defend support levels. Even so, XRP must reclaim key technical resistance levels before a stronger recovery can take shape.
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