Less than ten days ago, the popular cross-border token attempted to break through the $1.55 resistance level. That effort was met with an immediate and sharp rejection.
Over the past 24 hours the pullback has accelerated. While the broader market sits mostly in the red today and Bitcoin slipped to $75,000 for the first time in three weeks, XRP’s decline has been notably deeper.
Whale Activity Fades
Trading around $1.33 at the time of writing, XRP has fallen roughly 14% from its recent local peak on the 10-day chart. The token’s current price marks its lowest level since April 13, a six-week low. Market capitalization has declined toward $82 billion, and the gap between XRP and BNB has widened to more than $5 billion.
More concerning is the reduction in whale activity on the XRP network. Large transactions over $1 million have dropped from 157 a few months ago to just 67 today, a 57.3% decline. Popular analyst Ali Martinez noted that this drop may indicate the asset is entering a compression phase.
In practical terms, whales appear to have stepped back to let the current price range settle, which typically reduces immediate volatility and allows order books to normalize.
In the last 9 days, whale activity on the $XRP network has dropped from 157 large transactions worth over $1 million to just 67 today, representing a 57.3% decline.
When large-scale transaction volume thins out like this, it tells me the market could be entering a compression…
— Ali Charts (@alicharts) May 23, 2026
On a brighter note, earlier this week the network recorded a sizable spike in new wallet activity when roughly 4,300 new XRP wallets were created in a single day. That was the fourth-largest one-day increase in wallet creation on the XRP network this year. According to on-chain analytics provider Santiment, such network growth can be among the strongest indicators of a potential market reversal.
Potential for Further Downside
Not all analysts are optimistic. Crypto commentator CRYPTOWZRD observed that XRP recently closed on a bearish note and warned of additional pressure if Bitcoin continues to weaken.
Another analyst, CW, highlighted a growing trend of short positions in XRP and cautioned that the futures market is not yet showing reversal signals. In related commentary, CW warned the cross-border token could extend its slide toward $1.30 if selling persists.
Overall, XRP’s combination of price weakness, reduced whale activity and higher short interest suggests the token may be in a consolidation or compression phase that could resolve either as a renewed recovery if demand returns, or as further downside if broader market conditions continue to deteriorate. Traders should watch Bitcoin’s moves, on-chain wallet growth, and futures positioning closely for clues on the next directional move.