"Market plummets, but whales accumulate?"...XRP explodes alone in a bear market

▲ XRP/AI-generated image

XRP is showing distinct movements in terms of trading volume and settlement activity amidst the overall bearish trend in the cryptocurrency market. Although the price movement was sluggish, large wallets, XRP Ledger, and ETF investors continued their activities simultaneously, highlighting changes in market supply and demand.

NewsBTC reported on May 23 (local time) that the overall cryptocurrency market had fallen by more than 5% in the past seven days, and XRP also struggled to maintain upward momentum. However, the latest trading volume-related indicators showed that the activities of traders, large holders, ETF investors, and XRP Ledger users are still ongoing.

The first indicator to note is the movement of large wallet holders. According to data shared by crypto analyst Ali Martinez, large wallet holders accumulated 71 million XRP over seven days. During this period, XRP fell by approximately 5% weekly, and at the time Martinez shared the data, it was trading at around $1.36. This indicates that buying pressure from large wallets was observed during a period of bearishness and volatility.

This accumulation is interpreted as a signal different from a simple price drop. Even in a market with increasing selling pressure, large wallets expanded their exposure, and whale-like funds absorbed supply while weaker hands sold off. Although the price has not yet strongly reflected the buying pressure from large wallets, the change in supply and demand during a bear market is attracting investors' attention.

XRP Ledger's settlement activity also significantly increased during the recent market downturn. The number of inter-account settlements rose from below 1 million at the beginning of the week to 1.22 million on May 22. Along with the increase in the number of settlements, the volume of XRP settlements also expanded. The XRP settlement volume increased from around 200 million XRP on May 16 and 17 to over 400 million XRP on May 18. It maintained a high level for several days thereafter, exceeding the 400 million XRP mark even on May 22.

Another form of demand was confirmed in the ETF market. According to SoSoValue data, XRP-linked ETF products recorded a weekly net inflow of over $65 million last week. This week, net inflows continued daily, showing a positive trend of $22.04 million. Even as the overall cryptocurrency market faced pressure, ETF funds maintained their inflow.

The flow of XRP ETF funds is considered a different type of demand than regular exchange trading. While spot and futures trading volumes can arise from short-term trading and leveraged transactions, ETF net inflows indicate a trend where investors gain XRP exposure through structured investment vehicles. The fact that ETF buying continued even while XRP prices were weak suggests that underlying demand has not completely dried up.

XRP is experiencing short-term price pressure along with the overall market decline, but the accumulation of 71 million XRP by large wallets, 1.22 million settlement activities on the XRP Ledger, settlement volume exceeding 400 million XRP, and ETF net inflows were simultaneously confirmed. Even within a bear market, XRP-related trading volume indicators show that market participants' activities are ongoing.

*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.*