In the first half of May, XRP’s price surged over 20%. Recent on-chain data reveals a significant shift in the behavior of XRP whales — large wallets holding substantial amounts of the token. After months of heavy selling, whale wallets have begun to slow their sell-offs. This change brings hope for a new potential rally in XRP. XRP Whales Halt Sell-Offs, Signaling a New Phase in Price Movement According to CryptoQuant, XRP whales aggressively sold off their holdings in early 2025, pushing net flows deep into negative territory. It indicates that large investors capitalized on high liquidity and price momentum to exit their positions. Their selling pressure prevented XRP from climbing beyond $3.38 and caused it to plunge over 50%, down to $1.60 in April. However, recent data suggests a shift in momentum. XRP Whale Flow 30DMA. Source: CryptoQuant. Kripto Mevsimi’s analysis shows that large-scale selling has nearly stopped. The 30-day moving average Whale Flow chart reveals an upward trend in net flow bars, which indicates a significant reduction in selling pressure. Although this isn’t a full reversal yet, Mevsimi remains optimistic. “Whale flow reversals often precede sustainable recoveries. This shift may offer early signal of a base-building phase. Combined with resilient price, this flow inflection is worth watching closely,” Mevsimi said. Beyond on-chain metrics, other market indicators also look promising. According to CoinMarketCap, XRP’s daily spot trading volume has more than doubled, exceeding $10 billion, reflecting rising investor demand. Notably, community sentiment on CoinMarketCap is high. Around 88% of investors expressed a positive outlook on XRP. Additionally, Santiment data reveals an 11% increase in XRP-holding wallets in 2025 alone — proof of growing community interest. Total Amount of Non-Emply XRP Wallets. Source: Santiment. Santiment explained this rising interest by pointing to Missouri’s approval of House Bill 594, which eliminates capital gains tax on cryptocurrencies, including Bitcoin and XRP. “If it passes, it would let people in the state deduct all capital gains taxes from profits made on things like Bitcoin and XRP. That means if someone makes money trading these assets, they won’t have to pay taxes on those gains — and that’s major news for crypto investors in the US,” XRP Mining said. Analysts Highlight Liquidity as a Key Factor Behind XRP’s Price Movement Analyst Dom emphasized the importance of liquidity in a recent X post. He pointed out that liquidity, not just market cap, determines XRP’s breakout potential. His research shows that just $61 million in net inflows could boost XRP’s market cap by $16.6 billion. This underscores how sensitive XRP is to liquidity changes. XRP Aggregate Cumulative Volume Delta. Source: Dom on X “…marketcap is irrelevant — all that matters is liquidity,” Dom said. With trading volume surging and whale selling pressure easing, XRP appears well-positioned to attract fresh capital. However, if Dom’s analysis is accurate, it also serves as a warning. XRP’s market cap could drop just as quickly with only tens of millions in net outflows.