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XRP Whale Deposits To Binance Ease: Data Points To Lower Distribution Risk

XRP Whale Deposits To Binance Ease: Data Points To Lower Distribution Risk

Author:
Bitcoinist
Published:
2026-01-08 21:00:58
5
1

Whale wallets are hitting the brakes on sending XRP to exchanges—a classic signal that big holders aren't rushing for the exits.

The Slowdown in Whale Movements

On-chain data reveals a notable cooldown in large-scale XRP transfers to centralized platforms like Binance. This metric is a key watchpoint for traders; when whales stop flooding exchanges with supply, it typically removes a major overhang on price. Think of it as the crypto equivalent of a corporate insider not dumping their stock—it suggests confidence, or at least, a lack of panic.

What This Means for Market Structure

Fewer massive deposits mean less immediate sell-side pressure hitting the order books. It doesn't guarantee a price surge, but it does lower the near-term risk of a distribution cascade—where one whale's sale triggers others to follow. The market breathes a little easier without that sword dangling overhead. It's the kind of quiet that either precedes a storm or a sunny spell, and right now, the barometer is ticking toward the latter.

A cynical take? In traditional finance, this would be hailed as 'strong holder conviction.' In crypto, we just call it 'not selling today.' Sometimes the most bullish thing a whale can do is absolutely nothing.

Whale Flows Ease as XRP Searches for a Base

The CryptoQuant report highlights that the recent decline in whale flows to Binance has unfolded alongside a clear price correction in XRP. After peaking NEAR the $3.20 area in late 2025, the average price has retraced toward the $2.26 zone, cooling speculative excess built during the prior rally. Historically, heavy whale inflows to exchanges tend to signal preparation for selling or redistribution. In that context, the gradual reduction in these flows suggests that large holders are, at least for now, stepping back from aggressive distribution.

XRP Ledger Exchange Inflow | Source: CryptoQuant

This shift becomes more meaningful when contrasted with retail behavior. Data show that retail Flow percentages have remained relatively stable since mid-December, with no sharp spike in exchange transfers. That stability implies an absence of panic selling among smaller participants, even as the price corrected. When both whales and retail investors refrain from escalating sell pressure simultaneously, market conditions often transition away from impulsive downside moves.

Taken together, this dynamic points toward a potential re-accumulation phase following XRP’s strong advance earlier in the cycle. While whale activity remains elevated in absolute terms, its declining share reduces the probability of a sudden, disorderly sell-off in the near term.

That said, this balance remains fragile. Any renewed surge in whale flows to Binance WOULD quickly alter the outlook, serving as an early warning that distribution may be resuming and that downside risk is increasing again.

Price Struggles To Stabilize After Deep Retracement

XRP price action on the daily chart reflects a market still searching for balance after a sharp correction from late-2025 highs. Following the rejection near the $3.30–$3.40 region, XRP entered a sustained downtrend, printing a series of lower highs and lower lows. This structure remained intact through November and December, confirming persistent bearish pressure as price slipped below key moving averages.

XRP testing critical demand | Source: XRPUSDT chart on TradingView

Recently, XRP has attempted to stabilize around the $2.10 area, which is acting as a short-term demand zone. The bounce from sub-$1.90 lows suggests sellers are losing momentum, but the recovery remains technically weak. Price is still trading below the 50-day and 100-day moving averages, both of which are sloping downward and now represent dynamic resistance near the $2.40–$2.60 range. As long as XRP remains capped below these levels, upside moves are likely to face selling pressure.

Volume during the rebound has been relatively muted compared to the sell-off, indicating a lack of strong conviction from buyers. This supports the view that the current MOVE is corrective rather than the start of a new trend. Structurally, XRP would need to reclaim and hold above the $2.50 zone to invalidate the broader bearish setup.

The chart suggests consolidation risk remains elevated. Failure to defend $2.00 decisively could reopen downside toward prior liquidity zones, while a clean break above moving-average resistance would be required to signal a meaningful shift in momentum.

Featured image from ChatGPT, chart from TradingView.com 

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