XRP Price Jumps Nearly 20% As Whales Buy Aggressively

XRP's price has surged nearly 20% following a notable accumulation by large holders, or 'whales'. On-chain data highlights a significant shift in buying patterns, with large holders adding $710 million in XRP in January. This trend has occurred despite the token's price being 4% lower than it was at the start of the year.

Whales have been accumulating XRP in significant volumes, with large wallets holding between 1 million and 100 million XRP acquiring 380 million tokens for the month. This buying activity increased during specific periods, notably from January 9 to 11, where accumulation reached 242.7 million XRP in a single day. These actions suggest a strategic rather than impulsive buying pattern.

Retail investors, however, have been liquidating their positions. Addresses with less than 10,000 XRP have seen net outflows of over 145 million tokens in the week leading up to January 21, indicating widespread panic selling. This divergence between whale accumulation and retail outflows highlights a potential turning point in the XRP market.

Why the Move Happened

The $1.85 to $2.00 price zone is seen as a favorable entry point for whales. This level provides strong support and favorable risk-to-reward ratios. Low overhead supply makes accumulation safer for large holders, reducing resistance to upward price movement.

Historical patterns have shown that this price zone precedes significant rallies. In early January, the same pattern emerged with Korean exchanges like Upbit and Bithumb experiencing outflows, a dynamic that preceded a 560% rally in late 2024. These signals have prompted whales to position themselves for potential gains.

How Markets Responded

Retail investors are currently in an 'extreme fear' territory, with the XRP Fear and Greed Index plummeting into the low-20s. On-chain data reveals a stark contrast in investor behavior, with panic selling coinciding with whale buying.

ETF flows for XRP reflect mixed investor sentiment. While spot XRP ETFs recorded mild outflows of approximately $405,000 on Monday, they had posted significant inflows of nearly $17 million on Friday. The overall market remains cautious, with traders closing positions rather than opening new ones.

What Analysts Are Watching

The $1.85 support level is critical for determining the next price direction. If XRP stays above this level and accumulation continues, a move back toward $3 is plausible. However, if this support fails, further downside could be expected.

Analysts are also monitoring institutional and retail interest in crypto ETFs. Recent data shows that Bitcoin spot ETFs experienced a net outflow of $1 billion over the last two days, while XRP ETFs recorded inflows. These movements indicate shifting investor confidence in various crypto assets.

Retail sentiment remains cautious, with the Open Interest (OI) Weighted Funding Rate for XRP still in negative territory. A steady rise into positive territory would signal increased retail interest and could support a sustained uptrend.

Market observers are also watching for signs of macroeconomic changes that could influence XRP and other altcoins. The recent nomination of Kevin Warsh as the next Federal Reserve Chair and the Fed's pause in monetary easing have contributed to a risk-off market sentiment. These developments could influence investor behavior and asset allocations.

The return of 'millionaire wallets'—addresses holding 1 million or more XRP—has been a key indicator. Since January 1, 42 such wallets have returned, reversing a sharp decline in Q4 2025. This trend suggests that large holders are actively rebuilding positions and may continue to support the price.