XRP Price Flashing Bullish Setup as Whales Accumulate Steadily

XRP has been experiencing a turbulent month, with a year-to-date loss of 41%. However, on-chain data suggests that the altcoin may be gearing up for a bullish run. The Estimated Leverage Ratio (ELR) of the XRP Ledger has declined to 0.05, mirroring the conditions that preceded its 790% surge in 2024.

According to CryptoQuant data, XRP is currently entering a deleveraging phase, which could be a sign that the price will rally soon. In 2024, a similar decline in ELR led to a massive flush of leveraged positions and a sharp price increase.

But analysts caution that this is not a guaranteed sign of a rally, and XRP's Open Interest has fallen from $10.94 billion to $2.39 billion over the past year, indicating an outflow of leveraged capital worth around $8.55 billion.

On-chain data also suggests that whales are accumulating steadily, with their spot average order size dominating the market. Exchange reserve data shows a fall in reserves, with roughly $57 million flowing out of exchange balances into private wallets.