🔥 Key Takeaways
- XRP exchange reserves on South Korea’s Upbit and Bithumb have dropped sharply, similar to the pattern seen before XRP’s 560% rally in late 2024.
- Whale transactions on the XRP Ledger have reached a three-month high of 2,802, indicating increased large-scale activity.
- US spot XRP ETFs recorded their first net outflow on January 7, signaling a potential shift in investor sentiment.
XRP’s Mixed Signals: A Closer Look
XRP, one of the most widely traded cryptocurrencies, is sending mixed signals to start 2026. On one hand, exchange reserves on major South Korean exchanges Upbit and Bithumb have dropped significantly. This decrease in reserves echoes a similar pattern that was observed before XRP’s remarkable 560% rally in late 2024. Such a drop in reserves can indicate a decrease in selling pressure, as fewer XRP tokens are being held on exchanges, potentially leading to a price increase if demand remains steady or grows.
Increased Whale Activity
Further supporting the potential for a positive move in XRP’s price is the increase in whale transactions on the XRP Ledger. Whale transactions have hit a three-month high of 2,802, indicating that large investors or “whales” are actively moving XRP. This level of activity can be a precursor to significant price movements, as these large transactions often reflect the investment strategies of major market players who have more resources to allocate and can influence market trends.
First Net Outflow from US Spot XRP ETFs
On the other hand, US spot XRP ETFs (Exchange-Traded Funds) recorded their first net outflow on January 7. This outflow suggests that some investors are pulling their investments out of XRP, which could indicate a decrease in confidence or a shift in investment strategy. ETF outflows can impact the market price of the underlying asset, as they reflect a decrease in demand from institutional investors or those who prefer the ETF investment vehicle.
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