Key Takeaways
XRP is facing renewed accusations of market manipulation after on-chain data showed whale wallets strategically moving over 2 billion tokens—worth approximately $1.4 billion—in the 24 hours leading up to 15:00 UTC on May 11.
The activity, flagged by several on-chain tracking services, involves a series of large-scale transfers between unknown wallets and major exchanges. "These are not typical exchange rebalancing flows," one on-chain analyst noted in a social media post. "The timing and size are meant to create artificial price walls and trigger liquidations."
Data from Whale Alert and Arkham Intelligence shows at least five separate transactions exceeding 400 million XRP each. A significant portion of these funds were moved from exchanges like Binance and Bitstamp to new, unassociated wallet addresses. This pattern often suggests an intent to hold rather than sell, but analysts argue the sheer volume and coordinated timing are designed to spook the market and hunt stop-loss orders on derivatives platforms.
The alleged manipulation puts XRP's price at a critical juncture, potentially undermining investor confidence just as the token attempts to break key resistance levels. If substantiated, these actions could attract further scrutiny from regulators who are already closely monitoring the digital asset space for market abuse, posing a significant risk to XRP's long-term standing on major exchanges.
While the movements have been labeled as manipulative, some market observers draw parallels to recent Bitcoin whale activity. In April, Bitcoin whales accumulated 270,000 BTC, a move that historically preceded major price recoveries. However, the XRP transfers differ in their execution, appearing more focused on creating short-term volatility than quiet, long-term position building. The key difference, analysts say, is the destination: while Bitcoin whales moved coins off exchanges to hold, the XRP transfers involve a complex web of movements that suggest more active management.
The immediate impact has been a spike in XRP price volatility, with the token's price fluctuating sharply around the $0.70 mark. For leveraged traders, this environment is particularly treacherous, as the sudden liquidity shifts can trigger cascading liquidations. The accusations also cast a shadow over the long-term bull case for XRP, which, as noted in a recent analysis, targets a price of $5.00 contingent on regulatory clarity and strong institutional demand—two factors that are directly threatened by allegations of market manipulation.
This article is for informational purposes only and does not constitute investment advice.
