XRP’s price has tumbled nearly 27% since early August, sliding from $3.3 to $2.4, according to new data shared by on-chain analytics platform Glassnode. The decline coincides with a significant surge in selling activity from long-term holders, investors who accumulated their XRP before November 2024.
Glassnode highlights that long-term holders increased their spending volume by over 580%, rising from $38 million per day to $260 million per day (7-day SMA).
This spike signals an intensified distribution phase, as experienced investors appear to be locking in profits or reducing exposure after XRP’s mid-year rally.
Whales lead distribution phase
The on-chain data suggests that XRP whales, entities holding large balances, have been key contributors to the recent sell pressure. These holders tend to accumulate during periods of market uncertainty and distribute during rallies, often shaping XRP’s mid-term price structure.
Selling trends like this reflect a transition from long-term accumulation to distribution, which typically precedes short-term corrections before a new equilibrium is established.
Despite the sell-off, crypto analyst Altcoin Gordon suggests that the next key support zone lies near $2.69.
Glassnode’s data shows a common crypto market pattern: when seasoned holders start spending heavily during price weakness, it often indicates profit-taking rather than panic selling. However, with XRP’s price now testing multi-month support, market sentiment may hinge on whether institutional demand absorbs this selling pressure.
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