XRP Whale Activity Hits 3-Month High Amid Price Pullback

Data from Santiment reveals a sharp increase in high-value XRP transactions early this week. Whale-sized transfers, defined as those exceeding $100,000, climbed from 2,170 on Monday, January 7, to 2,802 on Tuesday, January 8. This marks the highest daily count since October 2025. Santiment analysts cautioned that such heightened activity from large holders often precedes more erratic price movement, signaling a potential shift in market dynamics.

This surge in on-chain transfers stands in stark contrast to activity on centralized exchanges. Separate data from CryptoQuant contributor CryptoOnchain showed that XRP reserves on Binance have fallen to approximately 2.6 billion tokens, their lowest level since January 2024. This represents a significant drawdown from roughly 3.25 billion XRP held on the exchange in late 2025. Market observers typically interpret such a sustained decline in exchange balances as a sign of coins moving into private, self-custodied wallets—a move more associated with holding than with preparing for an imminent sell-off.

Further analysis from Arab Chain adds nuance to the whale behavior. Their data indicates that the proportion of total XRP deposits to Binance coming from whale addresses has trended lower since mid-December 2025. After peaking above 70% of total inflows in November and early December, whale deposits now constitute about 60%, while retail participation has remained steady. Historically, according to Arab Chain analysts, a decline in whale deposits to exchanges suggests reduced immediate selling interest from these large market players.

This flurry of on-chain data arrives as XRP experiences a short-term price correction. According to CoinGecko, XRP was trading around $2.13 at the time of the report, reflecting a 6% drop over the preceding 24 hours. The sell-off followed a brief test of the weekly range high near $2.40 and aligned with a broader softening across the crypto market, affecting major assets like Bitcoin (BTC) and Ethereum (ETH).

Despite the recent dip, the longer-term trend for XRP remains constructive. The token is still up approximately 16% over the past seven days and nearly 14% over two weeks. Its monthly performance shows a gain just above 3%, though it remains slightly negative for the year. Technical analysts are closely monitoring key support near the $2.27 level, viewing a sustained hold above it as critical for maintaining bullish momentum. Some chartists have also highlighted a bullish technical setup on the XRP/BTC pairing—a signal of potential relative strength not observed since 2018.

The token’s profile has been elevated in traditional finance circles. On January 6, CNBC’s Power Lunch program labeled XRP the “hottest crypto trade” of 2026. The segment pointed to heavy investor interest driven by the search for larger percentage moves than those offered by BTC or ETH, especially following strong ETF inflows in late 2025.

The confluence of rising whale transfers and falling exchange balances presents a narrative that market participants are interpreting as strategic positioning rather than distress. The data suggests that large holders, or “whales,” are actively moving significant XRP quantities off exchanges during a price dip. This pattern is more consistent with accumulation or portfolio rebalancing in anticipation of future price appreciation than with preparing for a sell-off, which would typically involve moving tokens onto exchanges.

The reduction in the share of whale deposits to Binance further supports the thesis of decreased immediate selling pressure from this cohort. When combined with the overall decline in exchange reserves, the on-chain activity points toward a supply squeeze scenario, where available XRP for sale on major platforms is diminishing. However, as Santiment warned, the heightened activity itself is a volatility indicator, meaning short-term price swings remain highly likely even within a potentially bullish longer-term setup.

For now, the market narrative for XRP hinges on the interplay between these on-chain metrics and price action. The surge in $100,000-plus transactions to a three-month high underscores significant capital movement behind the scenes. Whether this translates into the “wider price movement” forecast by analysts will depend on whether the token can hold key support levels and if the apparent accumulation by large holders precedes a broader market recognition of the shifting supply dynamics highlighted by the falling balances on exchanges like Binance.