Major XRP Holders Capitalize on Market Downturn

XRP nears a 3-week low amid market sell-off, but on-chain data shows large investors are buying. Technical indicators suggest reduced liquidation risk, while institutional flows are mixed.

The cryptocurrency market is facing pressure from macroeconomic headwinds and sector-specific anxieties, with XRP trading near a three-week low. However, a clear divergence is emerging between price action and on-chain behavior, as large-scale investors appear to be accumulating the asset amidst widespread caution.

Technical Indicators and Market Mechanics

From a technical perspective, the asset is undergoing a significant test. The Relative Strength Index (RSI) is approaching oversold territory, with historical support levels identified between $1.22 and $1.28. Concurrently, leverage ratios in the derivatives market have fallen to cyclical lows. This suggests the immediate risk of cascading liquidations, which frequently trigger sharp price collapses, is currently diminished.

Divergent Signals from Large Wallets

Despite the negative price trend, certain participants are acting counter-cyclically. Data from late February 2026 indicates that so-called "whales"—wallets holding between 10 million and 100 million tokens—accumulated approximately 170 million XRP during the recent correction. This figure represents about 0.17% of the circulating supply.

This accumulation stands in contrast to potential selling pressure from other quarters. On February 21, a transfer of over 31 million tokens, valued at roughly $45 million, was sent to the Binance exchange. This inflow marked the largest single-day movement since January, an activity often interpreted as preparatory for selling.

Broader Market Drivers and Institutional Flows

The current weakness is primarily attributed to overarching market factors. Increased US tariffs and a broad sell-off in the technology sector, driven by valuation concerns surrounding AI-focused stocks, have dampened overall investor risk appetite. Within this environment, XRP has declined, currently trading at $1.36, reflecting a weekly loss exceeding 8%.

Institutional investment flows present a mixed picture. While the broader digital asset market recently experienced outflows, XRP has recorded institutional inflows of $105 million for the current month. In a contrasting move, the Franklin Templeton XRP ETF registered outflows over the same period, pointing to potential portfolio rebalancing.

Enterprise Adoption: A Nuanced Development

Progress in enterprise integration continues. Deutsche Bank now utilizes Ripple's infrastructure for cross-border payments and custody services. A critical detail for investors is that this integration leverages Ripple's software architecture but does not involve the use of the native XRP token.