Image by WorldSpectrum from Pixabay 

XRP price surged over 20% in early May, reversing a long downward trend driven by heavy whale sell-offs. On-chain data shows a slowdown in large wallet selling, which may support further gains. As momentum shifts, market activity and sentiment around XRP price have improved across several metrics.

Whale Activity Sees Sharp Decline

XRP price faced strong resistance earlier in 2025 due to heavy selling by large holders, which caused sharp market declines. These wallets pushed net flows into negative territory, coinciding with a drop from $3.38 to $1.60 in April. They used the rally in early 2025 to exit, creating consistent sell pressure for months.

However, recent data indicates a turnaround in this trend as large holders begin to retain their positions. The 30-day Whale Flow chart from Kripto Mevsimi shows a rise in net flows, suggesting reduced exits. While not a full reversal, the halt in aggressive selling may signal a shift in XRP price direction.

(Click on image to enlarge)

30-day Whale Flow chart

This trend change often leads to base-building phases, setting the stage for stable upward movements. Historically, reduced selling from whales has coincided with sustained gains in XRP price. The sell-off slowdown strengthened XRP’s recent rally and increased the chances of long-term recovery.

XRP Price Rises as Volume Spikes

Rising spot trading volume, which surpassed $10 billion this month, also boosted the XRP price. This volume increase signals growing activity across exchanges, further supporting current price levels. Combined with slowing whale exits, this adds to bullish momentum in the short term.

Community sentiment has also turned more positive as the XRP stabilizes. According to CoinMarketCap, 88% of tracked wallet holders now express a favorable outlook on XRP. This aligns with recent wallet growth, showing rising interest among crypto participants in 2025.

Since January, Santiment recorded an 11% increase in XRP-holding wallets, adding to signs of renewed accumulation. Much of this growth links to policy shifts, such as Missouri’s House Bill 594, which favors crypto. If passed, the bill could strengthen demand by removing capital gains taxes on XRP and Bitcoin.

Liquidity Remains Key Driver of XRP Price

According to analysts tracking net inflows and outflows, XRP depends heavily on liquidity. Dom highlighted that a net inflow of $61 million could boost XRP’s market cap by over $16 billion. This makes XRP highly responsive to even moderate shifts in market liquidity.

Ever wondered how much money it takes to cause a 16.6B increase in $XRP market cap?

Since I am tracking every trade on all major spot exchanges, I have the exact $ figure

61M USD. Thats the net market buying pressure we saw over the last 13 hours.

So yes, 61M USD of buy… pic.twitter.com/XDt6FMB0g9

— Dom (@traderview2) May 12, 2025

As liquidity rises, XRP price could benefit quickly from additional buying activity. However, the same mechanism could work in reverse if outflows resume. This sensitivity adds both opportunity and risk to current price trends.

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