Will Ripple's $1.25 Support Level Collapse? Rebound at Risk as Whale Funds Surge into Binance

▲ XRP/AI generated image ©

Ripple (XRP) is facing additional downward pressure due to increased exchange deposits from large whale investors, making the defense of the $1.25 support level a key variable. Despite an increase in new wallets and an inflow of funds into the XRP spot Exchange Traded Fund (ETF), selling pressure has persisted, pushing the price down from its recent high of $1.65 to $1.29. In particular, the volume of Binance deposits from large holders has expanded to its highest level since March, raising caution among investors hoping for a short-term rebound.

According to crypto-specialized media AMBCrypto on October 24 (local time), a total of $14.52 million in funds flowed into the XRP spot ETF in October, but it was insufficient to prevent a price decline. XRP fell by 13.4% from $1.49 to $1.29 earlier this month. Previously, in mid-September, strong buying pressure entered the demand zone around $1.25, leading to a rebound to $1.65, but continuous correction since then has brought it back to the same support zone. Consequently, the market is paying close attention to whether $1.25 can serve as a stepping stone for a second rebound.

Technically, XRP's daily chart still maintains a Bullish Swing Structure, but over the past few months, the price has shown a sideways, range-bound movement within a certain range. The key demand zone for short-term traders to watch is $1.27-$1.31, where an influx of buying pressure could potentially trigger a rebound. However, as the price could fall to the previous support level of $1.25, analysis suggests it is necessary to confirm whether actual buying pressure recovers in the support zone.

Positive signals have also been detected in on-chain metrics. According to cryptocurrency analytics platform Santiment, despite increased XRP price volatility in recent months, the number of wallets with balances on the XRP Ledger (XRPL) has steadily increased. In particular, the number of newly created wallets per day surged to 4,772, marking the fifth largest increase since March. The influx of new users and the expansion of the holder base are considered factors that could support future XRP demand. However, increased network participation has not immediately led to a price increase.

On the other hand, the increase in exchange deposits from whale investors has been identified as a key factor threatening a rebound. According to crypto analyst Darkfost, the monthly average of Binance deposits from large holders exceeding 1 million XRP increased from $72 million in August to a recent $112.4 million. This is the highest level since March, surpassing the recent three-month average of $90 million. On some trading days, whale deposits surged up to $400 million, indicating a potential increase in selling pressure from large holders. Previously, analysis also suggested that whale accumulation demand had slowed, as the proportion of transactions exceeding 1 million XRP in total exchange transactions decreased from 60% to 38.6%.

Currently, the volume of exchange deposits from whale investors has returned to normal levels, but market analysis suggests that a further decrease in deposits must be confirmed before a rebound can be highly anticipated. For investors considering buying around $1.25, a reduction in selling pressure from large holders will be an important signal. While the increase in new XRP Ledger wallets and spot ETF fund inflows are positive for long-term demand, in the short term, the trend of whale exchange deposits and the defense of the $1.27-$1.31 demand zone are considered key variables determining the price direction.

*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.*