XRP On-Chain Activity Signals Imminent Sell-Off — What’s Happening?

[Redator]

An alarming pattern of XRP whale activity has been noted, posing several questions about the sustainability of the cryptocurrency’s growth. Among the multiple questions currently being asked, one is more demanding of an immediate response: Is an XRP whale sell-off on its way?

XRP Supply Surges Across Major Exchanges

In an October 3rd post on the social media platform X, market analyst CryptoOnchain highlighted a recent shift in the behavior of XRP’s largest holders, the whales. 

The online pundit’s report was based on the Exchange Supply Ratio indicator, which tracks the proportion of XRP tokens on exchanges relative to its total circulating supply. 

This metric can be used to derive insights on potential selling pressure for a crypto asset (XRP, in this case), seeing as higher values would suggest increased availability of tokens on the exchange for sale. 

According to CryptoOnchain, there has been a spike in XRP supply across major exchanges, suggesting that whales might be positioning for a significant sell-off. The data shared reflects the increase in selling pressure across these exchanges, including Bithumb, Bitget, Bitfinex, and Binance, putting the XRP price at an increased risk of a sharp correction.

XRP Displays Bearish Divergence As Sellers Dominate Futures Market 

In a separate post made on the CryptoQuant platform, CryptoOnchain also revealed a budding negative divergence across the XRP futures market. 

The relevant indicator here is the Taker Buy Sell Ratio metric, which monitors the balance between aggressive buy and sell orders in the futures market. This metric is typically used to assess whether buyers or sellers are dominating the market in the short term.

The analyst noted that while the price of XRP has been mostly around $3 after its recent rise, the ‘Taker Ratio’ across exchanges has fallen to its lowest level since November 2024. Interestingly, data from Binance, the world’s largest crypto exchange, further supports this bearish signal, as patterns similar to those seen on other exchanges have also been surfacing. 

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CryptoOnchain explained that this situation could either mean that the market participants are booking profits or anticipating a price decline in the near future. However, the spike in XRP supply across major crypto exchanges, alongside the clear dominance of sellers in the perpetual futures market, strongly suggests the imminence of a price correction.

It is therefore advisable to watch the psychological $3 level closely before market decisions are made. As of this writing, XRP is hovering around the $3 mark, reflecting a nearly 2% decline in the past 24 hours.