XRP is trying to stabilize at the $2.10 level after experiencing a sharp 12% retracement from its recent high in the area. The pullback cooled momentum and left the market searching for direction, with bulls struggling to regain control amid widespread uncertainty across the crypto sector. Although pressure has eased for now, price action remains uncertain, reflecting a delicate balance between buyers protecting support and sellers using recent strength.
Adding significant context to this consolidation, CryptoQuant’s latest analysis highlights a significant change in XRP’s on-chain flow dynamics. Tracking data on the movement of XRP on Binance shows that whales continued to dominate the income of the exchange, accounting for about 60.3% of the total transfer, compared to 39.7% caused by retail participants.
However, despite whales still representing the majority, their participation has been steadily declining since mid-December. This marks a clear change from November and early December, when whale activity increased to more than 70% of the total flow.
Historically, high whale penetration in the trade has often been associated with distribution or increased selling pressure. The gradual decline in whale dominance suggests that major owners may be backing off from an aggressive stance after the recent correction.
Whale Flows Easily as XRP Seeks Base
The CryptoQuant report highlights that the recent drop in whale flow on Binance has occurred alongside a clear price correction in XRP. After peaking near the $3.20 area in late 2025, the average price has returned to the $2.26 area, cooling the overestimates built up during the previous session. Historically, a heavy whale entry into the trade has often signaled a sale adjustment or reallocation. In that context, the gradual reduction of these flows suggests that large holders, at least for now, are backing away from aggressive distribution.
This shift becomes even more meaningful when compared to marketable behavior. The data shows that the percentage of retail flows has remained stable since mid-December, with no sharp spike in cash transfers. That stability means the absence of panic selling among small participants, as the price is fixed. When both whales and retail investors avoid increasing selling pressure at the same time, market conditions tend to shift away from stressful conditions.
Taken together, this points to a potential rebound phase following XRP’s strong run earlier in the cycle. Although whale activity remains high in absolute terms, its declining share reduces the likelihood of a sudden, disorderly selloff in the near term.
That said, this balance remains delicate. Any renewed increase in whale flow on Binance could quickly change the outlook, being an early warning that the distribution may start again and that downside risk is increasing again.
Price Struggles to Stabilize After Deep Retracement
The XRP price action on the daily chart shows a market that is still looking for balance after a sharp correction from the end of the year 2025. Following the rejection near the $3.30–$3.40 region, XRP entered a continuation pattern, printing a series of lower highs and lower lows. This structure remained intact in November and December, confirming continued bearish pressure as the price fell below key moving averages.
Recently, XRP has tried to settle in the area around $2.10, which is acting as a temporary demand area. A bounce from the $1.90 lows suggests sellers are losing momentum, but the recovery remains technically weak. The price is still trading below the 50-day and 100-day moving averages, both of which are down and now represent volatile resistance near the $2.40–$2.60 range. As long as XRP remains embedded below these levels, an upward move is likely to face selling pressure.
Volume during the recovery period was muted compared to sales, reflecting a lack of strong consumer confidence. This supports the view that the current move is corrective rather than the start of a new trend. Structurally, XRP will need to retrace and hold above the $2.50 area to invalidate the broader bearish setup.
The chart suggests that consolidation risk remains high. A failure to defend $2.00 could obviously reopen in previously used areas, while a clean break above the moving average resistance would be necessary to signal a meaningful reversal of momentum.
Featured image from ChatGPT, chart from TradingView.com
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