XRP Whale activity Surges as Profit Realization Spike: A Correction Ahead?

Key Highlights 

• XRP whales are aggressively selling with whale exchange flow surging to 2.09k. 

• After XRP surge to $2.5, accumulation has turned to distribution. 

XRP Profit Realization Spike 

Since rallying to a local high of $2.65 a week ago, Ripple's XRP has struggled to maintain an uptrend. After hitting these levels, the altcoin retraced hitting a local low of $2.2. For the last 3 days, XRP has consolidated between $2.2 and $2.4.

These retraces and subsequent consolidation in the market mainly arise as whales have turned to profit realization.

According to Cryptoquant data, a significant net inflow of 440K XRP to centralized exchanges was recorded today, indicating growing exchange-side selling pressure. Such a higher flow implies that investors are aggressively offloading their holdings.

This selling activity is even higher among XRP whales. Currently, whale inflow metrics also show a significant spike. XRP whale to exchange total has surged hitting 2k over the past day. Such levels were previously witnessed on May 9th shortly after prices declined then rallied to $2.5 four days later.

Often, a spike in whale exchange inflow reinforces our earlier observation that large holders are moving XRP to exchanges most likely for profit-taking. Thus whales are increasingly selling their holdings to take profit after a recent price uptick.

With XRP holding strong above $2.4, holders who acquired the altcoin at $2.1 and below $2 are now in profit. This has created a suitable window for profit-taking among whales who are impatient with the consolidation.

Although whales are selling, the recent netflow pattern has been largely negative, signaling prior accumulation or self-custody behavior.

However, as of now, a combined spike in total netflow and whale inflows marks a clear divergence a potential shift from accumulation to distribution.

What it Means for XRP

Whale behavior often precedes broader market reactions. This move of both whales and general net inflow suggests that selling pressure may rise, increasing the chance of short-term volatility or correction.

Therefore, a continuation of the current exchange and whale behavior positions XRP for further consolidation or even decline. If whales continue to sell as much as they are selling now, XRP will drop to the lower boundary of the consolidation channel around $2.2.

Conversely, if profit-taking behavior cools down, the altcoin will jump back to $2.5 repeating the similar pattern witnessed a week ago.

For a sustained breakout above these levels, profit-taking behavior needs to cool down, and buyers will have to retake the market. Such conditions could see the altcoin for a rally towards $3.