XRP’s value motion over the previous two weeks has been characterised by sharp fluctuations which have stored merchants on edge. The token briefly plunged beneath $2 earlier than staging a speedy restoration that noticed it climb as excessive as $2.8, all inside only a few days.
This fascinating value motion is an extension of the whole crypto market, which ended February on a loopy decline earlier than bouncing again in early March. This bounce again was sparked by Donald Trump’s hinting a few crypto reserve within the US. Nonetheless, on-chain knowledge reveals that the surge has been met with an equally dramatic sell-off by giant holders.
Trump’s Crypto Announcement Causes XRP Value Surge
XRP loved a sudden upward jolt following a shock announcement by Donald Trump on Sunday, March 2. The US president revealed plans for a US Crypto Strategic Reserve that would come with XRP alongside Bitcoin, Ethereum, Solana, and Cardano. The prospect of government-backed crypto reserves fueled a shopping for frenzy throughout the whole market. XRP registered an intraday rally of over 30% after Trump’s assertion, briefly pushing its value in direction of the $3.00 mark once more.
Nonetheless, the celebratory temper proved short-lived. Inside a day of the announcement, XRP gave again a bit of its beneficial properties as promote orders flooded the market. After peaking above $2.8 through the Trump-fueled rally, the value shortly retreated by about 10%. By Tuesday, the asset was buying and selling within the mid-$2 vary once more.
Apparently, on-chain knowledge reveals that whale traders (these holding huge positions) have unloaded report quantities of the token within the wake of the rally. Miles Deutscher, a crypto market analyst, highlighted the development on X (previously Twitter) with a stark remark utilizing knowledge from the on-chain analytics platform CryptoQuant.
Deutscher’s put up was accompanied by a chart pointing to heavy profit-taking by whales, and he described the market’s habits as a textbook distribution part.
The Altcoin In The Distribution Section
A distribution part is a interval when early traders money out en masse following a powerful rally. Within the case of XRP, early traders are those that purchased the token throughout its multi-year bear rut underneath $0.5. That is based mostly on a momentum that had been rising since late 2024, which noticed the altcoin climb greater than 500% from roughly $0.55 in early November to over $3 by January 2025.
As proven by the chart above, whales have been promoting for some time and proceed to take action after the latest Trump-induced rally. Notably, the CryptoQuant chart reveals adverse whale flows peaking at over 180 million XRP in early March, which is its highest degree in years.
Apparently, change knowledge reveals a concurrent bounce in provide on buying and selling platforms. Binance, for instance, has seen its XRP reserves spiking from 2.72 billion to 2.90 billion tokens in latest days.
On the time of writing, the token is buying and selling at $2.46 and is beginning to get well in direction of $3 once more.
Featured picture from Medium, chart from Tradingview.com