Whale transactions on the XRP Ledger for amounts exceeding $1 million have plummeted by 97% in just one week, indicating a significant downturn in large investor participation. According to data from Santiment, which was highlighted by analyst Ali Martinez, this decline saw the number of such transactions drop from approximately 70 to only two as of July 12.
This notable drop began on July 9, following a period where daily whale transactions had remained above 52. The sharp decline coincided with a bearish trend for XRP, which experienced a price decrease of over 6% last week, erasing nearly all of its gains for July. The altcoin, which had climbed as high as 14% earlier in the month, is now showing a mere 3.5% increase.
While fewer transactions among whales do not necessarily predict a bearish outcome, they often indicate that major players are stepping back from the market. This trend, when coupled with the recent price weakness, suggests that institutional investors may be awaiting a more favorable market environment before re-engaging.
Currently, XRP's price is hovering around $1.08, facing immediate resistance near $1.11. Analysts suggest that XRP could potentially decline further into a demand zone between $0.90 and $0.94, a critical area where buying pressure might emerge. If this region holds, it could set the stage for a rebound, allowing XRP to reclaim its descending trendline and aim for higher price targets.
As the market continues to react to these developments, the situation remains fluid, and investor sentiment will likely play a crucial role in determining XRP's next movements. This material is informational and not financial advice.
