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▲ XRP, USD
As XRP continues its sideways movement in a box range over recent weeks, a key indicator on Binance showing trading flows between whales and retail investors has fallen to its lowest level since 2024. Despite a short-term rise, XRP failed to break the $1.60 resistance, leading to analysis that the speculative trading fervor of retail investors has weakened.
NewsBTC reported on May 10, citing a Quicktake analysis by CryptoQuant analyst Amr Taha, that the Binance XRP Whale-Retail Spread indicator has dropped to approximately 88.8%. This indicator measures the difference between large whale-sized withdrawals and retail investor-sized withdrawals on Binance, helping to determine whether market activity is whale-centric or retail investor-centric.
Taha explained that while the current figure is still in positive territory, it is difficult to ignore that it has significantly decreased from its past peak of around 94%. He analyzed that the period above 94% generally coincided with strong retail investor trading activity, and speculative movements in the market increased when quick-reacting retail investors actively engaged in trading.
NewsBTC stated that historically, increased retail investor trading activity has accompanied bullish price movements for XRP. However, with the current indicator showing a growing gap from the over 94% range, an interpretation has been suggested that the withdrawal patterns on Binance are increasingly diverging from the trends seen in a retail investor-driven market.
However, an analysis also emerged that this drop in the indicator does not immediately signify a bearish reversal for XRP. Taha viewed it as more indicative that retail investor speculative demand and the associated short-term momentum might weaken somewhat. He explained that if macroeconomic conditions remain stable, XRP could face bearish pressure in the mid-term, but it might not be enough to trigger a bearish cycle.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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