Massive Whale Buying Spree Could Trigger XRP Supply Shock as Exchange Balances Drop to Lowest Since 2023 ⋆ ZyCrypto

Ripple whales have reportedly accumulated more than 50 million XRP ($103 million) in a recent buying spree, according to data from the crypto analytics website Santiment, sourced by a popular crypto commentator. The fifth-largest cryptocurrency by market capitalization is currently trading just above $2.05 after a mild recovery over the last couple of weeks.

Ali Charts, the analyst in question, shared this tweet:

According to the provided chart, XRP held by whales has increased from just above 3.52 billion to 3.58 billion during the last 7 days. It represents an overall increase of 50 million XRP or $103 million based on the latest spot price. The figure peaked around Friday at 3.6 billion, but outflows that day brought it back to its closing level.

Whale Accumulation to Lead to Price Shock?

In theory, increased accumulation of an asset by whales (aka large holders) and subsequent transfers to long-term holding addresses (such as cold wallets) can cause a supply shock, thereby increasing the asset’s value over time. If large amounts of XRP continue to migrate to whale wallets, then a significant price increase can be on the cards.

However, not all whales hold crypto in cold wallets or even HODL it, so it can be difficult to predict the next course of action for the billions of crypto holdings across the blockchain. There is one analytic that shows the amount of XRP leaving cryptocurrency exchanges. Here is the exchange reserve situation on Binance:

According to this graph, XRP exchange reserves topped 3 billion just before the October 10 crash. After that, the trendline is largely downwards and currently hovering around 2.6 billion XRP. This is the lowest level Binance has witnessed in roughly two years, according to CryptoQuant data.

Low exchange reserves also point to the possibility of a supply shock that can provide the pull needed to tip the scales upwards into a bullish phase. Considering XRP’s trend of consistently falling exchange reserves, the market could react accordingly in favor of the bulls. 

The Future

The major cryptocurrency is currently struggling to break above $2 and move back towards the highs above $3.6 set in July 2025. The overall altcoin market has also witnessed a brisk recovery during the first two weeks of the new calendar year, but XRP, like other tokens, remains below crucial resistance levels.

The bulls need to press hard and search for an opening. Otherwise, they can fatigue and give way to bearish forces soon. XRP needs to move above $2.50 to enter a clear recovery phase towards the ATH above $3.6.