XRP price surges over 20% as whale selling slows down

XRP price surged over 20% in early May, reversing a long downward trend driven by heavy whale sell-offs. On-chain data shows a slowdown in large wallet selling, which may support further gains.

XRP price saw a strong surge of over 20% in early May, reversing a long downward trend that was largely driven by heavy whale sell-offs. On-chain data shows a slowdown in large wallet selling, which may support further gains for the altcoin.

As momentum shifts, market activity and sentiment around XRP price have improved across several metrics. This aligns with a stabilization in the coin’s value, which could be setting the stage for a potential reversal in the coming months.

Whale Activity Sees Sharp Decline

Earlier this year, XRP price faced strong resistance at higher levels due to persistent selling pressure from large holders, which led to several sharp declines in April. These wallets pushed net flows into negative territory, which coincided with a drop from $3.38 to $1.60 in April.

However, recent data shows a turnaround in this trend as large holders begin to retain their positions. The 30-day Whale Flow chart from Kripto Mevsimi shows a rise in net flows, suggesting reduced exits.

While this isn’t a complete reversal, the halt in aggressive selling could signal a shift in XRP price direction. This type of trend change often leads to base-building phases, setting the stage for stable upward movements.

Historically, reduced selling from whales has coincided with sustained gains in XRP price. This sell-off slowdown strengthened XRP’s recent rally and increased the chances of long-term recovery.

XRP Price Rises As Volume Spikes

This comes as trading volume in the past month has also risen above $10 billion, which signals growing activity across exchanges. This volume increase further supports current price levels.

Combining this data point with slowing whale exits adds to bullish momentum for XRP in the short term.

Community sentiment has also become more positive as the altcoin stabilizes. According to CoinMarketCap, 88% of tracked wallet holders now express a favorable outlook on XRP.

This aligns with recent wallet growth, showing rising interest among crypto participants in 2025. Since January, Santiment recorded an 11% increase in XRP-holding wallets.

This influx of new holders could be driven by shifts in crypto policy. For instance, Missouri’s House Bill 594, if passed, could strengthen demand by removing capital gains taxes on XRP and Bitcoin.

Liquidity Remains Key Driver Of XRP Price

According to analysts tracking net inflows and outflows, XRP depends heavily on liquidity. Dom highlighted that a net inflow of $61 million could boost XRP’s market cap by over $16 billion.

This makes XRP highly responsive to even moderate shifts in market liquidity.

Ever wondered how much money it takes to cause a 16.6B increase in $XRP market cap?

Since I am tracking every trade on all major spot exchanges, I have the exact $ figure

61M USD. Thats the net market buying pressure we saw over the last 13 hours.

So yes, 61M USD of buy… pic.twitter.com/XDt6FMB0g9

— Dom (@traderview2) May 12, 2025As liquidity rises, XRP price could benefit quickly from additional buying activity. However, the same mechanism could work in reverse if outflows resume.

This sensitivity adds both opportunity and risk to current price trends.