Ripple’s 65 million XRP transfer raised sell-off concerns, but historical patterns suggest it could be a routine Treasury or operational move rather than a confirmed bearish signal.
Despite weak XRP price performance and bearish sentiment, strong institutional inflows and a defended demand zone suggest quiet accumulation below the surface.
Ripple is back in the spotlight after moving large amounts of XRP from wallets, reigniting debate over the token’s short-term prospects. Blockchain tracker Whale Alert reported the transfer of 65 million XRP (worth about $121 million) from an address linked to Ripple to an unknown wallet. The trade immediately caught the attention of traders and analysts as it took place at a time of market weakness.
XRP dump? Time to raise your eyebrows
The move comes as the broader crypto market is already under pressure. XRP itself was trading in the red and was struggling to regain momentum after recent volatility. The funds were sent to an unidentified address in a single transaction, sparking immediate speculation. Some market participants questioned whether Ripple was preparing for a sell-off or liquidity redeployment amid the uncertainty.
That said, a massive XRP move from Ripple is not unprecedented. The company has historically migrated tokens for operational reasons such as financial management, partnerships, and payment infrastructure support. Without further clarification, the intentions behind this move remain unclear.
Fear of Selling and Operational Movement
The cryptocurrency community appears to be divided on what this move means. On the other hand, short-term traders are concerned that such a transfer could increase selling pressure, especially as XRP continues to trade below key psychological levels. On the other hand, multiple observers have argued that the transaction may be related to Ripple’s continued business activities rather than outright dumping.
Ripple has been regularly migrating XRP to support institutional customers and expand cross-border payment services. Given the company’s increasing engagement with financial institutions, this move may reflect back-end activity rather than a bearish signal.
XRP price remains under pressure
Despite signs of steady interest from institutional investors, XRP price performance remains weak. Since the sharp market correction earlier this cycle, the token has struggled to sustain higher levels. After briefly showing signs of recovery, XRP has fallen back into negative territory.
Cryptocurrency user DeFi Peniel highlighted the sharp divergence in XRP’s current configuration, noting that while the overall sentiment around the token has become very bearish, capital flows tell a different story. He noted that XRP still maintains a key demand zone between approximately $1.82 and $1.98, suggesting price protection despite the lackluster action.
At the same time, XRP-linked investment products recorded net inflows of nearly $44 million on December 22nd, indicating that institutional capital is quietly entering the market. According to Peniel, this contrast between negative social sentiment and a steady influx is often seen during the accumulation phase, when weak hands have already exited and large players absorb the supply before the trend can change.
