XRP Price Faces Liquidity Drought and Whale Sell-Off

XRP's price has been experiencing a sticky situation, hovering around $2 due to several factors affecting its liquidity and whale activity.

The capital depth supporting XRP markets has been declining, leading to thinner markets and increased volatility. This decline in liquidity is particularly concerning, as it means that even small changes can have significant effects on the price.

Moreover, data from CryptoQuant reveals a steady increase in cumulative whale inflows into Binance since January 2026, with an acceleration of this trend observed in early February. This could signal larger players transferring balances to exchanges more aggressively, potentially leading to short-term corrections or heightened volatility.