Ripple Whales Dump 4.4M XRP Tokens — Will Price Keep Rallying?

At least 110 million XRP (XRP) tokens have left the addresses of its richest investors, indicating that these “whales” are either dumping or redistributing their token holdings during the ongoing price consolidation phase.

Are XRP Whales Really Selling Their Holdings?

Specifically, the XRP supply held by entities with a balance of at least 1 million tokens declined to 84.02 billion on Dec. 17, compared to its monthly peak of 84.13 billion two weeks ago. Nonetheless, the current supply is still above 2024’s lowest point of 83.8.3 billion.

Similarly, other significant cohorts—those holding between 100,000 XRP and 1,000 XRP—have also reduced their holdings. That shows mid-sized investors mirroring the whales’ cautious behavior, reducing their positions in anticipation of price uncertainty or reallocating funds elsewhere.

In contrast to the larger cohorts, entities holding at least 100 XRP—worth approximately $250 at current prices—have increased their holdings.

Retail traders interpret XRP’s ongoing price stagnation as an opportunity to accumulate at lower levels, effectively “buying the dip.” However, some of these smaller wallets may be linked to whales, who may redistribute their holdings to new addresses to maintain risk.

Is Buying XRP in December Good Investment Strategy? Fundamental and Technical Analysis

XRP’s price rallied by almost 350% in 2024, with the most significant gains occurring after Donald Trump’s victory in the US presidential election on Nov. 6.

The cryptocurrency’s rally grew momentum after the New York Department of Financial Services, one of the US’s strictest financial regulators, approved Ripple’s stablecoin project RLUSD.

On Dec. 17, Ripple launched RLUSD on a select number of exchanges, including Uphold, Bitso, MoonPay, Archax, and CoinMENA. The stablecoin functions atop the XRP Ledger, XRP’s parent chain, meaning a higher demand for RLUSD could boost XRP’s utility.

Furthermore, Trump’s reelection has boosted the odds for the “SEC vs. Ripple” lawsuit conclusion, paving the way for US companies to launch spot XRP exchange-traded funds (ETF).

Therefore, from a fundamental perspective, XRP can witness substantial growth in its demand.

XRP/USD Technical Analysis — Ascending Triangle Breakout Underway

Technically, XRP has been consolidating inside an ascending triangle range following its 100%-plus price rally.

This pattern is characterized by higher lows and a relatively flat resistance line near $2.72. Traders often interpret ascending triangles as continuation patterns, which could lead to another strong upward move if the price breaks above this resistance.

The breakout target for this triangle is measured by the height of its widest section, projected upward from the breakout point. In XRP’s case, a decisive move above the $2.72 resistance could propel the price toward the $4 level, marking a 48% gain from current levels.

XRP’s daily exponential moving averages (EMAs)—particularly the 20-day and 50-day EMAs—are trending upward, supporting the bullish outlook. The 20-day EMA, currently at $2.24, continues to act as dynamic support, reflecting strong buying interest at dips.

The Relative Strength Index (RSI) has climbed above 70, suggesting XRP is entering overbought territory. While this may signal short-term caution, it also reflects the prevailing bullish sentiment in the market.