Despite Bitcoin surging past $111,000 to reach a new all-time high, XRP — like many altcoins — remains stuck in consolidation. Over the past 24 hours, XRP price gained just 3.6%, failing to break out even after a significant 250 million token accumulation by a whale from Kraken. This raises an important question: Why isn’t XRP moving despite strong buying signals? And more importantly, what should investors expect next?
The Whale Move That Didn’t Spark a Rally
On-chain analytics reveal that on May 21, a large wallet transferred nearly 250 million XRP from the Kraken exchange. Historically, such whale accumulations are bullish indicators. When major holders pull large volumes off exchanges, it reduces circulating supply and often precedes price rallies due to tightening market availability.
👉 Discover how whale movements can signal major price shifts before they happen.
However, this time the expected surge failed to materialize. Over the following day, XRP fluctuated between $2.33 and $2.43, underperforming compared to other top altcoins like Solana, Dogecoin, and Cardano. While other assets capitalized on Bitcoin’s momentum, XRP remained range-bound.
So what went wrong?
Whale Selling and Market Overcrowding Offset Buying Pressure
The answer lies in counteracting sell-side pressure. Although one whale accumulated 250 million XRP, others were actively selling. According to Santiment, wallets holding between 10 million and 100 million XRP offloaded 100 million tokens within 24 hours — effectively neutralizing much of the bullish momentum.
This wave of selling coincided with a spike in long liquidations. Data from Coinglass shows that over **$3 million in long positions were wiped out** during the same period. As prices briefly tested the $2.40 resistance level, overleveraged traders faced margin calls, triggering cascading sell-offs.
Overleveraged Futures Market Adds Risk
Further complicating the outlook, Binance data reveals an imbalanced long/short ratio of 3.12, meaning there are over three long positions for every short. While this suggests bullish sentiment, it also signals an overcrowded long market — a red flag for potential corrections.
When too many traders bet on upside movement, market makers often exploit the imbalance by pushing prices down to trigger mass liquidations. This “long squeeze” resets leverage levels and clears weak hands, creating cleaner conditions for a sustainable rally — but only after short-term pain.
👉 See how real-time leverage data can help you avoid being caught in a liquidation trap.
Technical Outlook: Support Levels and RSI Signals
From a technical perspective, XRP is currently testing critical support at $2.32**. A break below this level could accelerate selling pressure and open the door to a deeper correction toward **$2.16 — a level that might serve as a healthier base for future growth.
At the same time, the Relative Strength Index (RSI) sits at 55 and trending upward. While not yet confirming strong bullish momentum, this suggests building buying interest. For a true breakout, the RSI needs to form a higher high above 60 while price consolidates above $2.40.
Until then, XRP is likely to remain in a tight trading range between $2.30 and $2.45. A decisive move beyond this zone will require either renewed altcoin momentum or fresh institutional inflows.
Why Bitcoin’s Dominance Is Draining Altcoin Liquidity
Bitcoin’s surge to new highs has come at a cost for altcoins. As BTC absorbs capital and investor attention, liquidity is being pulled away from secondary assets like XRP. This “risk-off” rotation into Bitcoin often occurs during volatile phases, especially when macroeconomic uncertainty lingers.
With Bitcoin dominance rising, altcoins face an uphill battle to attract new demand. Without a broader shift back toward risk-on behavior, even strong on-chain developments — such as whale accumulation — may fail to ignite sustained rallies.
👉 Learn how Bitcoin dominance cycles impact altcoin performance and timing your entries.
What Traders Should Expect Next
Given current conditions, here’s what investors should anticipate in the near term:
- Continued consolidation: XRP is likely to trade sideways between $2.30 and $2.45 until broader market sentiment shifts.
- Potential downside test: If selling pressure intensifies, a drop to $2.16 is possible to flush out excess leverage.
- Breakout setup: Once long positions are reset and RSI confirms strength above 60, a move toward $2.61 becomes increasingly viable.
- Catalyst watch: Any positive regulatory clarity around Ripple’s ongoing legal situation could reignite speculative interest.
Until then, patience is key. Whale moves alone aren’t enough to drive price without supporting market structure and sentiment.
Frequently Asked Questions (FAQs)
Why didn’t XRP price rise after the 250M whale buy?
Despite the large accumulation, selling pressure from other whales and massive long liquidations offset the bullish impact. Net demand remained flat.
Is whale selling normal for XRP?
Yes. Whale activity is common in XRP’s market due to its centralized distribution. Monitoring net flow (on-chain inflows vs outflows) gives better insight than single transactions.
What causes long liquidations in crypto markets?
Overleveraged traders get liquidated when price moves against their position. A sharp drop or failed breakout can trigger cascading sell-offs.
How does Bitcoin dominance affect altcoins like XRP?
When Bitcoin absorbs most trading volume and investor focus, altcoins often stagnate or decline due to reduced liquidity and risk appetite.
Can XRP still rally in 2025?
Yes — if macro conditions improve, leverage resets occur, and fresh demand enters. Key resistance levels to watch are $2.61 and $3.00.
What technical indicators should I monitor for XRP?
Focus on RSI trends, exchange net flows, funding rates, and long/short ratios to gauge market health and potential breakouts.
Core Keywords:
- XRP price
- Whale accumulation
- Long liquidation
- Bitcoin dominance
- On-chain data
- XRP rally
- Support levels
- Futures market leverage