Ripple's XRP Sees Significant Decline in Large-Scale Investor Movement, Sparking Uncertainty Over Its Near-Term Valuation Outlook

The XRP market is currently undergoing a period of stabilization, characterized by reduced activity among large investors, following a significant downturn in transactions exceeding $1 million. According to data from Santiment, which was highlighted by analyst Ali Martinez on May 23, the number of these high-value transactions has plummeted by 57%, from 157 to 67, over the course of nine days. This sharp decline in whale activity is occurring as XRP's price hovers around $1.30, marking a period of relative calm after a tumultuous stretch for the broader cryptocurrency market. The decrease in large transactions suggests that major players may be adopting a wait-and-see approach, allowing the current trading range to become more established. Historically, decreases in high-value transaction volumes have frequently been accompanied by reduced market volatility and increased price consolidation, as investors await a new catalyst to drive price movement. The diminished participation of large investors may indicate that institutional traders are delaying their entry into the market, preferring to wait for clearer economic signals, regulatory developments, or a more favorable market environment before taking on larger positions. In an intriguing contrast, Santiment's data revealed that XRP's network experienced one of its most substantial growth spurts of the year as of May 21, with approximately 4,300 new wallets being added to the XRP Ledger on May 20, representing the fourth-largest daily increase in wallet creation in 2026. Furthermore, the number of daily active addresses has surged to levels not seen in recent months, suggesting renewed user engagement despite the prevailing market weakness. This rebound in network growth follows a period of slowdown earlier in May, and analysts often interpret rising wallet creation and active address metrics as indicators of improving adoption and stronger blockchain participation, particularly during periods of price consolidation. At the time of writing, XRP is trading at $1.31, having declined by more than 3% over the past 24 hours and over 6% on the weekly chart. The token's price remains below its 50-day and 200-day simple moving averages of $1.40 and $1.70, respectively, indicating weak momentum in both the short and long term. The 14-day Relative Strength Index (RSI) of 43.45 suggests a neutral market sentiment, but also hints at waning buying pressure, leaving XRP vulnerable to further decline unless its momentum improves. Despite this, the token has managed to maintain a price above the crucial $1.30 support level, mitigating the risk of a more severe short-term correction. XRP is likely to remain range-bound between $1.20 and $1.40, unless large investor activity experiences a resurgence. A breakout above $1.40 could potentially pave the way for a move toward $1.50, provided that the broader market sentiment improves. Conversely, continued weakness in whale participation and trading volume could push XRP back toward the $1.10-$1.20 support zone.