XRP and Whale Activity: How Market Trends Shift After Recent Crypto Volatility

The crypto market has been quite shaky lately. After Bitcoin reached record highs, the excitement quickly cooled down. Investors are now more cautious. One big reason is the surprising data showing stagnant funding rates, even with Bitcoin’s strong performance.

According to data from Glassnode, Bitcoin’s funding rate remains nearly flat at 0.0079%. This number shows that traders are neither too bullish nor bearish. That’s unusual during a bull run. It signals a growing sense of doubt among investors despite rising prices.

Funding Rates Show a Split

Most major cryptocurrencies are also seeing flat or neutral funding rates. But two coins stand out — XRP and Dogecoin (DOGE). Both have positive funding rates, meaning traders are betting on their prices to go up. Here’s a simple breakdown:

Even though their funding rates are slightly positive, XRP and DOGE are not immune to price drops. In fact, in the most recent dip:

• Bitcoin dropped 1.85%
• XRP fell 2.54%
• Dogecoin declined 2.89%

So, despite some bullish signals, the market is still under pressure.

XRP’s Major Milestone: CME Futures Launch

One of the biggest events for XRP in recent history was the fact that it got listed on the Chicago Mercantile Exchange (CME). This happened on May 19. CME is a big global platform for trading futures, so getting listed there is really something.

This puts XRP in the same league as Bitcoin and Ethereum when it comes to institutional trading. Although XRP’s price dropped on the day of the launch, analysts believe that the move would increase long-term adoption and confidence.

Whale Activity Signals Growing Confidence

While retail investors are watching from the sidelines, crypto whales are making moves. Over the past week, holders with 10 million to 100 million XRP have been increasing their positions. This kind of large-scale accumulation is often seen as a vote of confidence in the asset’s future.

However, the picture is mixed. Exchange reserves of XRP have gone up, especially on Binance. This suggests that while some whales are accumulating, others might be getting ready to sell. It’s a push and pull that keeps traders on edge.

Technical Analysis: Mixed Signals for XRP

XRP is currently trading around $2.44, showing a “higher low” trend, which is usually a good sign. Some moving averages also support the idea of an uptrend. But indicators like the Relative Strength Index (RSI) are only slightly bullish.

There are both promising and concerning signs:

Positive Signals:

• XRP/BTC formed a golden cross (when a short-term average crosses above a long-term one) on the weekly chart.
• This is the first time since 2017, often seen as a bullish signal.

Warning Signs:

• XRP is near a double top at $2.65, a bearish pattern that may signal a price drop.
• A rising wedge pattern is breaking down, suggesting XRP could drop to $1.94 in the short term.

Legal Battle Still a Risk

One major issue holding XRP back is its ongoing legal fight with the U.S. Securities and Exchange Commission (SEC). The lawsuit is still unresolved and brings uncertainty to XRP’s future, especially in the U.S. market.

Until there’s a final ruling, this case will continue to affect investor sentiment and slow progress on things like spot ETF approvals.

The market is at a turning point. While XRP shows signs of strength, the overall picture remains cloudy. Here’s a quick recap:

• Bitcoin’s funding rate is flat despite price highs.
• XRP and DOGE show slight optimism with positive funding rates.
• CME launched XRP futures, boosting its institutional credibility.
• Whales are accumulating XRP, but exchange reserves are rising too.
• Technical charts give mixed signals: golden cross vs. double top.
• The SEC lawsuit remains a key risk factor.

Investors are watching closely. XRP’s next move depends on both market forces and legal clarity. For now, the mood is hopeful—but careful.