**XRP Whales Take Profits as Exchange Reserves Climb: What’s Next for the Token?**
XRP whales are currently offloading their holdings, leading to an increase in exchange reserves and a notable decline in whale flows. Despite this sell-off, some bullish patterns are emerging, hinting at potential midterm gains with targets set above $3. Following an exciting announcement from former U.S. President Donald Trump that XRP would be included in a U.S. strategic crypto reserve, the token experienced a significant rally, soaring 35%. However, this enthusiasm was short-lived, as XRP has since retraced all its recent gains and is now facing renewed pressure.
On-chain data indicates that large investors are taking profits, with CryptoQuant founder Ki Young Ju noting a rise in whale activity within the $2-$3 range. This behavior aligns with what is known as the “distribution phase,” where major holders typically sell off their tokens after a price increase. Supporting this observation, on-chain analyst Maartunn highlighted that XRP’s whale flow metric, calculated using a 30-day moving average, has reached an all-time low. He remarked that whales are “dumping XRP like never before,” signaling strong selling pressure. Additionally, XRP exchange reserves on Binance have increased from 2.72 billion to 2.90 billion tokens, which often suggests heightened selling activity among large holders.
Currently, XRP is trading at $2.37, reflecting an 8.42% decline over the past 24 hours. Despite this bearish trend, some traders are optimistic, viewing the pullback as a mere correction before another upward movement. Captain Faibik pointed out a bullish pennant pattern on the daily chart, which could indicate an 80-100% price increase in the midterm. Analyst CasiTrades also noted that XRP is in a Wave 4 consolidation phase. He observed that XRP recently bounced off the $2.565 support level to form a triangle pattern. If this support holds, the next significant test will be at $3.05, where a breakout could propel XRP to $3.57.
CasiTrades further suggested that XRP might be at the beginning of a larger uptrend, with a potential breakout that could challenge all-time highs. However, before this occurs, a Wave 2 correction might push prices back into the $2.40-$2.50 range before a more substantial rally takes place.
Looking ahead, some long-term predictions are quite optimistic. EGRAG CRYPTO has forecasted that XRP could reach between $27 and $33 by May 2025. This projection is based on historical price movements, particularly XRP’s 2017 cycle, which saw a staggering 2,500% gain in just 175 days. EGRAG noted that current trends resemble the previous bull run, suggesting the potential for another explosive move. He pointed to the formation of a weekly channel and highlighted that the 21 EMA has just closed above a crucial level with a small wick, a pattern that often signals an imminent breakout. If XRP follows a similar trajectory as in 2017, it could reach the Fibonacci 1.618 extension level, which would be an exciting development for investors.
