XRP News: Key Ripple Whale Indicator Turns Negative After 4 Months, Price to Fall?

In a major XRP news today, a key on-chain whale indicator flipped negative for Ripple’s native crypto asset XRP. The on-chain metric now flashes a sell signal for the first time since February. Will XRP price witness further selling pressure and drop below $1 in the coming days amid growing headwinds?

Ripple Whale Flow Turns Negative for the First Time in 4 Months

The XRP Whale Flow 30-DMA metric has now flipped negative, according to CryptoQuant on-chain data. This marks the first time the key Ripple whale indicator signaled selling pressure among whales after nearly 4 months.

XRP faced renewed distribution pressure over the past few weeks despite XRP Ledger upgrades, with Ripple whales liquidating their holdings. XRP price top in mid-May coincided with sustained whale distribution and a subsequent correction.

As CoinGape warned earlier, XRP whale activity has kept declining since early May. The whale accumulation dropped from 9-13 million daily whale activity to nearly 4 million XRP per day.

On Tuesday, whale flow dropped to 1.24 million. This indicates a shift in whale behavior amid rising uncertainty and a broader crypto market crash.

Ripple executive chairman Chris Larsen’s wallet addresses also became active again during this period. However, the transfers were significantly lower to shake XRP price.

XRP Funding Rates on Binance Hit 3-Month Low

As XRP price failed to build upside momentum, funding rates for XRP perpetual contracts on Binance continued to fall. This indicates increasing selling pressure for Ripple’s native crypto asset in the derivatives market.

According to the latest funding rates data, the funding rate has fallen to almost -0.0139, the lowest level in more than three months. This means a shift in trader sentiment toward short positions.

Funding rates have fluctuated between positive and negative values over the past few months, triggering rising XRP prices and increased demand for long positions. However, this balance gradually shifted as bullish momentum weakened.

While persistently negative funding rates reflect weak market sentiment, reaching extremely low levels can sometimes trigger a short squeeze.

Will Price Fall amid Bearish XRP News?

XRP price fell to a 24-hour low of $1.02 in the past 24 hours. But the price has since rebounded to $1.04, with a 24-hour high of $1.05. Moreover, trading volume has remained low in the past few days, indicating a decline in interest among traders.

Analyst Ali Martinez pointed out that XRP price could find support at $0.90. He highlighted that the UTXO Realized Price Distribution (URPD) on-chain data showed $0.80, $0.62, and $0.51 as key support levels to watch.

Moreover, XRP futures open interest fell nearly 2% to $2.28 billion as the Clarity Act passing odds tanked. The total open interest dropped more than 0.50% on CME and more than 2.30% on Binance.

Moreover, spot XRP ETFs recorded $2.83 million in net outflows on Tuesday, with Bitwise XRP ETF recording $5.82 million in redemptions. Also, Canary’s XRPC saw $2.99 million in inflows.