XRP News Today: Coinbase’s XRP Cut Sparks Debate: Big Sellers or Bigger Risks?

Coinbase's recent significant reduction in XRP holdings has sparked speculation among investors and analysts about the underlying reasons and potential implications for the cryptocurrency market. The exchange currently holds 249,161,825 XRP coins, a 57% decline from the previous month and a 69% drop since the second quarter of 2025 [1]. This decline has led to Coinbase's exit from the top ten largest XRP holders, a move that contrasts with other exchanges that are increasing their reserves [1].

The sell-off could be attributed to multiple factors, including regulatory uncertainty and a strategic shift in Ripple’s focus. With the SEC-Ripple lawsuit resolved in August 2024, Coinbase may be adjusting its exposure to XRP due to the uncertain regulatory environment [1]. Additionally, Ripple’s ongoing initiatives in On-Demand Liquidity and enterprise solutions are shifting the token's focus away from retail trading platforms, potentially reducing the need for high exchange reserves [1].

On-chain data further complicates the narrative. Analysts like Maartun have observed that XRP whales are actively distributing their holdings, as indicated by the Whale Flow 30-day moving average. The metrics show a consistent outflow from large wallets, suggesting that major holders are selling their positions during periods of elevated prices [2]. This whale activity, combined with Coinbase’s reduced holdings, points to a broader trend of large-scale distribution rather than a short-term market fluctuation.

The market response to these developments has been mixed. While some analysts remain optimistic, viewing the current consolidation as a prelude to another breakout, others are cautious, noting the risks of a sharper correction if the selling continues [2]. XRP is currently trading around $3, with key support levels in the $2.85–$3.00 range. The asset has struggled to regain momentum above $3.20, and its inability to retest July’s highs near $3.70 reflects a slowdown in buying pressure [2].

Investors are advised to closely monitor both on-chain signals and price movements, as the next directional move could determine whether the current consolidation leads to a new bullish trend or a deeper correction. The ongoing distribution by whales, if sustained, may increase downside risks for XRP, potentially exposing it to a correction toward the mid-$2.50s [2].

Despite the uncertainty, Ripple remains one of the top-performing altcoins in 2025, driven by regulatory advancements and the potential launch of an exchange-traded fund. However, investors should remain cautious and keep a close eye on regulatory updates and market sentiment to better navigate the evolving landscape [1].

Source:

[1] Coinbase Slashes XRP Stash: Is a Big Shift Brewing? (https://dailycoin.com/coinbase-slashes-xrp-stash-big-shift-brewing/)

[2] XRP Whales Unload Massive Bags: Distribution Or Trap? (https://www.mitrade.com/insights/news/live-news/article-3-1072659-20250827)