The cryptocurrency market has seen renewed interest from large-scale investors, even amid broader price corrections and declining network activity. In June, XRP whales—holders with 100 million or more tokens—have been actively accumulating the digital asset during its recent price dip. This strategic buying contrasts sharply with a nearly 40% decline in active addresses, signaling a complex dynamic between investor behavior and on-chain usage.
As XRP’s price dropped nearly 6% since the beginning of June and wiped out an additional 2% on a single Tuesday, falling to $0.4885, major wallet holders are viewing the pullback as a buying opportunity. Despite fading blockchain engagement, these deep-pocketed investors appear confident in XRP’s long-term potential.
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On-Chain Activity Declines Amid Price Correction
Active addresses serve as a key indicator of real-world blockchain usage. A drop in this metric often suggests reduced transactional activity or waning user interest, which can fuel bearish sentiment.
According to data from Santiment’s on-chain analytics platform, Ripple’s active address count fell to approximately 19,500 by June 11—a nearly 40% decrease compared to early June levels. This downward trend raises questions about short-term network vitality, especially during a period when price movements typically drive increased trading volume.
While lower activity may concern some investors, it's important to note that not all metrics point to weakness. In fact, while everyday usage slows, large-scale accumulation tells a different story.
Whale Wallets Accumulate XRP in June
Despite reduced network engagement, on-chain supply distribution data reveals a significant shift among high-net-worth holders. Three distinct whale segments—those holding 1–10 million XRP, 100 million–1 billion XRP, and over 1 billion XRP—have collectively increased their holdings by nearly 2% between June 1 and June 10.
This accumulation pattern suggests that institutional-grade investors or long-term holders see current price levels as favorable entry points. Such behavior is often interpreted as a contrarian signal: when retail interest cools and fear rises, whales quietly build positions.
This divergence—declining activity but rising whale holdings—highlights a maturing market where large players act independently of short-term volatility. It also underscores the importance of analyzing multiple on-chain indicators rather than relying solely on surface-level metrics like active addresses.
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Technical Outlook: XRP Faces Further Downside Pressure
From a technical perspective, XRP appears poised for additional downside movement. On the XRP/USDT daily chart, the cryptocurrency has shown bearish momentum, recently shedding around 2% in value to trade at $0.4876 on Binance at the time of writing.
Key support levels to watch include:
- $0.4508, the low recorded on June 7, representing a potential floor if selling pressure continues.
- $0.4665, the April 19 low, which could act as intermediate support.
A break below these levels might extend losses toward the next psychological threshold near $0.43. Conversely, a daily candlestick close above **$0.5060**—the June 10 high—would challenge the current bearish thesis and could reignite bullish momentum.
Additional technical indicators reinforce the downside bias:
- The Relative Strength Index (RSI) has dipped to 35.03, approaching oversold territory (30), suggesting limited selling room before a potential rebound.
- The MACD shows bearish signs: the signal line crossed above the MACD line on June 6, and red histogram bars remain below the neutral axis, indicating sustained downward pressure.
However, a move above $0.5060 could trigger a reversal scenario, with XRP potentially targeting the **50% Fibonacci retracement level at $0.5310**—calculated from the April 9 peak ($0.6431) to the April 13 trough ($0.4188).
Frequently Asked Questions About XRP and Market Dynamics
Q: Why are XRP whales buying while others are selling?
A: Large investors often take contrarian positions during market dips. With XRP trading below $0.50, whales may perceive it as undervalued based on fundamentals, historical performance, or anticipation of regulatory clarity.
Q: Does declining active address count mean XRP is losing adoption?
A: Not necessarily. Short-term drops can result from market sentiment or seasonal lulls. Long-term adoption depends on broader factors like partnerships, real-world use cases, and regulatory outcomes.
Q: Is XRP still considered a security?
A: The U.S. SEC vs. Ripple lawsuit delivered a split ruling: programmatic sales (e.g., exchange trades) are not securities, but institutional/OTC sales are classified as investment contracts. This partial decision impacts how XRP is regulated but doesn't fully resolve its legal status.
Q: How does the SEC ruling affect other cryptocurrencies?
A: The case sets a precedent for distinguishing between retail and institutional token sales. While it offers some relief to projects with decentralized distribution models, it leaves key questions unanswered about decentralization thresholds and classification criteria.
Q: Can XRP recover if whale accumulation continues?
A: Sustained accumulation by large holders often precedes price recovery. If combined with positive news or improved market conditions, whale buying could catalyze renewed investor confidence.
Q: What should traders watch for next?
A: Key levels include $0.4508 and $0.4665 for downside support, and $0.5060 for bullish reversal confirmation. On-chain flow data and whale wallet movements remain critical leading indicators.
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Conclusion: Contradictory Signals Define XRP’s Current Phase
XRP’s market narrative in June is defined by contradiction: weakening on-chain activity clashes with strong accumulation by major holders. While declining active addresses suggest reduced short-term engagement, whale buying indicates underlying confidence in future value appreciation.
Technically, the coin faces headwinds with bearish momentum on the daily chart, yet oversold conditions and strong support zones suggest a rebound remains possible. The outcome of ongoing regulatory developments—particularly surrounding Ripple’s legal battle with the SEC—will likely play a decisive role in shaping long-term investor sentiment.
For traders and investors alike, monitoring both macro-level technicals and micro-level on-chain behaviors offers the clearest path to understanding XRP’s next move.
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