During the initial half of May, XRP experienced a price surge of more than 20%. Recent data from on-chain analysis indicates a noteworthy change in the behavior of XRP whales, which are large holders of the digital token.

After a period of consistent selling, these whale wallets have reduced the frequency of their sell-offs, fostering optimism for a potential upsurge in XRP's price.

In early 2025, XRP whales were actively selling off their assets, causing a significant negative impact on net flows, as reported by CryptoQuant. This selling pressure prevented XRP from surpassing $3.38 and led to a significant drop to $1.60 in April.

However, the latest data suggests a shift in momentum as large-scale selling has decreased. The 30-day moving average Whale Flow chart illustrates a positive trend in net flow bars, indicating a decrease in selling pressure.

While this change is not a complete reversal, analysts like Mevsimi view it optimistically. Mevsimi believes that whale flow reversals often precede sustainable recoveries, hinting at a possible base-building phase for XRP.

In addition to on-chain metrics, other relevant market indicators also present positive signals. XRP's daily spot trading volume has more than doubled, exceeding $10 billion, showcasing a rise in investor interest. Community sentiment on CoinMarketCap is largely positive, with approximately 88% of investors expressing optimism towards XRP.

Furthermore, data from Santiment indicates an 11% increase in XRP-holding wallets in 2025 alone, indicating a growing interest in the XRP community.

Market observers highlight liquidity as a crucial element influencing XRP's price movements. Analyst Dom emphasizes that liquidity, rather than market cap, plays a pivotal role in determining XRP's potential for growth. Dom's research demonstrates that a modest $61 million in net inflows could substantially boost XRP's market cap.

With trading volume on the rise and selling pressure from whales decreasing, XRP seems poised to attract new investments. However, analysts caution that XRP's market cap could decline rapidly with even minor net outflows, as liquidity plays a critical role in its price dynamics.