On-chain data from Santiment reveals a widening divergence between large and small XRP holders, with wallets holding between 100,000 and 100 million XRP increasing their balances by 2.8% over the five weeks since late June, while the smallest wallets reduced their holdings by 5.2% over the same period.

This shift in ownership coincided with XRP rebounding from $1 at the end of June to above $1.16 before settling at its current trading level of approximately $1.13.

Whale and Shark Accumulation Signals Confidence

Santiment classifies wallets holding between 100,000 and 100 million XRP as "whales and sharks." Their combined 2.8% balance increase over the past five weeks suggests that larger market participants were steadily building positions during the price recovery, even as smaller investors reduced exposure.

The pattern of supply migrating from smaller to larger holders is a dynamic observed across cryptocurrency markets during recovery phases, where retail investors typically exit near local lows while entities with deeper capital buffers absorb available supply.

Santiment described this transfer of supply from smaller to larger holders as a bullish indicator. The analytics firm stated on X: "Historically, XRP price has tended to move more with key stakeholders and against the smallest retail wallets, so this split supports the bullish case behind the bounce."

Drivers Behind Large Holder Accumulation

According to Santiment, the accumulation aligns with improving fundamentals and broader ecosystem developments. These include potential institutional access through XRP ETF products and the continued utility of the XRP Ledger across payments, tokenization, and the RLUSD stablecoin — Ripple's U.S. dollar-backed stablecoin.

The regulatory backdrop for XRP shifted following the 2023 federal court ruling that programmatic sales of XRP on public exchanges did not constitute securities transactions, providing a degree of legal clarity that has since underpinned institutional product filings. Multiple asset managers, including Bitwise, 21Shares, Canary Capital, and WisdomTree, have submitted spot XRP ETF applications, though none had received approval at the time of reporting.

Supporting on-chain data also shows that selling pressure from major holders has eased. Whale deposits to Binance have declined significantly, indicating fewer large investors are moving XRP to exchanges for potential sale. While lower exchange inflows typically reduce immediate supply pressure, they do not guarantee future price appreciation.

Current Market Indicators

XRP is currently trading around $1.13, representing a 24-hour gain of 0.39%. Its market capitalization stands at $70.96 billion, also up 0.39%, while 24-hour trading volume has declined 30.37% to $993.96 million. The volume-to-market-cap ratio is 1.4%.

In derivatives markets, XRP futures trading volume reached $1.79 billion over the past 24 hours. Approximately $1.07 million worth of futures positions were liquidated, with around $510,850 from long positions and $558,160 from short positions. Open interest stands at $2.53 billion after rising 0.63%, indicating that market leverage continues to adjust gradually. Options volume declined 50.46% to $2.52 million, while options open interest increased 1.83% to $68.42 million.

Technical indicators present a mixed picture. The Relative Strength Index (RSI) stands at 55.21, signaling neutral momentum. The MACD continues to generate a buy signal, while the 200-day Simple Moving Average remains on a sell signal, indicating that XRP is still trading below this long-term trend line.

Ownership Structure Implications

The ongoing wallet shift could contribute to a more resilient ownership structure. As larger holders accumulate while smaller wallets reduce positions, more supply moves to investors who have historically been less reactive to short-term volatility — a pattern that has previously coincided with stronger price support for XRP.

However, Santiment's data reflects a trend built over five weeks rather than a sudden buying surge. Whether this structure remains supportive will depend on whether large holders continue adding to or maintaining their positions.

Weaker spot trading activity suggests retail participation remains subdued. While softer spot demand may limit immediate upside, it also indicates that widespread retail buying has yet to emerge.

Key Factors to Monitor

Market participants are likely to watch whether XRP whale accumulation continues over the coming weeks and whether sustained spot demand returns alongside institutional interest. Continued development of the XRP Ledger through payments, tokenization, and the RLUSD stablecoin may remain an important driver of long-term confidence. Broader liquidity conditions and consistent network utility will be key factors in determining whether the recent accumulation develops into a more durable trend.

Sources: CoinDesk, CoinMarketCap, CoinGlass, TradingView