The Spot ETF flows to XRP in October have totaled +$14.52 million so far. The ETF inflows were not enough to halt the 13.4% price decline in October though, with the altcoin falling from $1.49 to $1.29 at the time of writing.
In mid-September, XRP tested the $1.25 local demand zone and saw a bullish price reaction that boosted the token up to $1.65. The retracement since then, including the steady losses in October, has driven the price back to the same demand zone.
XRP bulls look to hold on to $1.25 for a second time
AMBCrypto recently reported that the share of exchange transactions amounting to more than one million XRP dropped from 60% to 38.6%. It highlighted a slowdown in large-holder transfers, and their lower accumulation interest could help explain XRP’s price decline.
While the swing structure on the 1-day chart remained bullish, XRP settled into a range formation in recent months. The $1.27-$1.31 demand zone is the one swing traders will want to watch, anticipating a bullish price reaction.
Increased whale inflows threaten recovery potential
Crypto intelligence platform Santiment observed that the number of non-empty wallets on the XRP Ledger has been rising steadily, despite the price volatility in recent months.
Moreover, the number of new XRP wallets created in a day jumped to 4,772, the fifth-biggest spike this metric has seen since March. Fresh participation and holder growth could boost demand too.
At the same time, XRP inflows from whales (defined as exceeding 1 million tokens) to Binance have accelerated in recent weeks. The monthly inflow average has increased from $72 million in August to $112.4 million. These figures are the highest since March, according to crypto analyst Darkfost.
In fact, they were above the $90 million monthly average recorded in the past three months, and there have been daily spikes of $400 million, reinforcing the claim that whale selling has intensified.
Right now, whale inflows have retraced to typical levels, but a trend in the opposite direction would be more encouraging for investors and swing traders looking to buy at the $1.25 demand zone.
Final Summary
- On-chain activity with holder growth and new wallets created on the XRP Ledger reflected positively on the altcoin.
- Steady selling pressure, including from whales, drove the drawdown from $1.65 to $1.29.
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