Ripple (XRP) is undergoing a correction on the 7th, slipping more than 2% along with the overall weakness in the cryptocurrency market.

As major cryptocurrencies show simultaneous weakness, liquidations of long positions are increasing, and Ripple (XRP) is also being affected by short-term selling pressure.

Price Corrects While Whale Withdrawals Expand

According to the Binance Ripple flow chart, the price of Ripple (XRP) fluctuated after mid-March before dropping to around $1 in mid-August. The mood then shifted quickly, with the price rebounding and climbing to around $1.50 by late September. Recently, it has given back some of its gains and is entering another correction phase.

Meanwhile, Binance's whale withdrawal flow is tracing a different trajectory from the price. The 30-day cumulative withdrawal volume, which had been declining since March, formed a low in early August and then reversed direction. Withdrawals subsequently increased rapidly, with the latter part of the chart showing levels rising to approximately 1.3 to 1.4 billion XRP.

What is particularly noteworthy is that even as the price undergoes a recent correction, whale withdrawal volumes remain at high levels. In other words, price weakness and a surge in large-scale amounts moving off exchanges are occurring simultaneously.

Exchange Withdrawals Cannot Be Directly Interpreted as 'Accumulation'

Typically, when a cryptocurrency moves from an exchange to an external wallet, it is sometimes interpreted as a signal that the amount available for immediate sale on the market is decreasing. When withdrawals by large holders increase, possibilities such as long-term storage, separate custody, or transfers to other wallets are often discussed.

However, caution is needed in directly interpreting increased exchange withdrawals as accumulation, as withdrawals can occur for various reasons, including transfers between exchanges or changes in custody wallets.

Short-Term Price vs. Mid-Term Supply-Demand... Three Points to Watch

The current market situation surrounding Ripple (XRP) is drawing attention because short-term price and mid-term supply-demand signals are diverging. While long position liquidations in the derivatives market are weighing on the price, on-chain data shows whale outflows from Binance expanding.

Compared to early August, when whale withdrawal volumes remained at low levels, recent cumulative withdrawals have increased substantially. During the same period, the price of Ripple (XRP) also rose from around $1 to the $1.50 range, though its upward momentum has recently slowed.

Ultimately, to judge the future trajectory, rather than looking at price alone, it is necessary to also examine: whether the whale withdrawal trend continues, whether XRP balances on exchanges are actually decreasing, and whether liquidation pressure in the derivatives market is subsiding.

In the short term, overall market volatility is likely to determine Ripple's (XRP) direction. However, the fact that large-scale outflows from exchanges are continuing even as the price wavers is a notable point from a supply-demand perspective.

[This article is an informational content piece based on publicly available market data and on-chain indicators, and does not recommend buying or selling any specific cryptocurrency. Exchange withdrawals can occur for various reasons, such as transfers to personal wallets or changes in custody, and cannot be definitively concluded to be accumulation. Cryptocurrencies are highly volatile, and analyses and forecasts may differ from actual market movements. Investment decisions and responsibilities rest with the investor. AI assistance was used in the writing of this article.]