XRP is facing renewed short-term pressure following a significant surge of inflows to Binance, with on-chain data indicating that large holders were primarily responsible. This spike is notable because it signals a sudden increase in potential selling pressure at a time when overall market momentum remains sluggish.
CryptoQuant contributor Darkfost highlighted the move in a post today, linking it to a softer environment for altcoins while Bitcoin continues to trade within a range. “BTC remains rangebound, offering little short-term directional clarity. This lack of momentum is weighing on the broader market, with altcoins continuing to underperform in the absence of a clear trend,” Darkfost wrote.
This context is important for XRP. In a market with limited follow-through, large exchange deposits can carry more weight than they would during a strong bullish phase, especially when the flows are concentrated among whale-sized holders.
The chart shared by Darkfost, titled “XRP Ledger: Exchange Inflow – Value Bands – Binance,” shows a clear outlier on February 21. Total inflows jumped to over 31 million XRP, far exceeding the surrounding days between February 15–23. The stacked bars were dominated by the 100k–1M XRP and >1M XRP cohorts.
Darkfost summarized the move: “This week was notably marked by a significant XRP inflow to Binance, which remains the go-to exchange for large transactions thanks to its deep liquidity. More than 31 million XRP were transferred to the exchange in a single day yesterday.”
The chart also indicates this was not a broad retail-driven event. Smaller holders contributed relatively little to the spike, while large holders accounted for nearly all of it. This pattern supports Darkfost’s argument that the event raises short-term risk, as it represents concentrated, potentially market-moving supply arriving at a highly liquid exchange.
According to the breakdown, the inflows were led by the two largest groups: 14,236,825 XRP from wallets in the 100k–1M band and 14,494,865 XRP from whale wallets holding over 1 million XRP. Mid-sized wallets in the 10k–100k range added 2,938,809 XRP, while the sub-10k segments contributed only a small fraction.
Overall, the distribution confirms the event was driven by whales rather than being diffuse. This matters because large inflows to exchanges are often seen as a potential indicator of intent to sell, even though the inflow alone doesn’t confirm execution.
Darkfost framed the risk in dollar terms: “Altogether, this represents a sudden potential sell-side pressure of nearly $45 million that warrants close monitoring. Should this selling pressure persist, XRP may struggle to recover from its ongoing correction in the near term.”
The price chart overlaid on the data shows XRP trading lower through much of the same period. It slid from the higher end of its range around February 15–16, bottomed near February 19, and saw only a modest rebound afterward. By the time of the large February 21 inflow, the price had recovered somewhat but remained below earlier weekly levels. However, this rebound was completely erased during the early European morning session, with XRP falling as low as $1.33. At the time of writing, XRP is trading at $1.3947.
Frequently Asked Questions
FAQs XRP Price Pressure Large Holder Transfers to Binance
BeginnerLevel Questions
1 What does it mean that XRP is facing shortterm pressure
It means there are factors right now that are likely pushing the price of XRP down or preventing it from rising in the near future
2 Who are the large holders mentioned
These are individuals or entities who own very large amounts of XRP Their trades can significantly impact the market due to the sheer size of their holdings
3 Why would someone transfer a lot of XRP to Binance
The most common reasons are to sell it on the exchange or to use it as collateral for other trades A large transfer to an exchange often signals an intent to sell which can increase selling pressure
4 What is onchain data
Its public information recorded on a cryptocurrencys blockchain It shows transactions wallet balances and transfers between addresses allowing analysts to see what large holders are doing
5 Is this definitely bad news for XRP
Not necessarily but its often viewed as a bearish signal in the short term It indicates increased potential selling activity which typically pushes prices down
Advanced Practical Questions
6 How does a large transfer to an exchange create selling pressure
Exchanges are the primary places where people buy and sell When a whale moves coins to an exchange it increases the immediate supply available for sale on the order books If they place large sell orders it can overwhelm buy demand and drive the price down
7 Could there be another reason for the transfer besides selling
Yes though selling is the most direct interpretation Other possibilities include moving funds for safekeeping using them in Binances financial products or preparing for OTC deals that are settled off the public order books
8 Where can I check this onchain data for myself
You can use blockchain explorers like Bithomp or XRPScan to look up specific wallet addresses and see transaction histories Analytics platforms like Santiment or IntoTheBlock aggregate this data to highlight whale movements
9 As an investor what should I do when I see this news