XRP Faces Three Warning Signs as Whale Activity Declines

October has proven challenging for the crypto markets, particularly for XRP, which has seen its price drop significantly. As of now, XRP is trading at $1.30 after a 4.81% decline over the past week. This downturn is accompanied by three bearish indicators that suggest a lack of buying momentum.

Declining Whale Outflows

According to on-chain analyst Darkfost, whale outflows from Binance have reached their lowest level in five years, with a 90-day average of approximately $49.7 million as of October 20, 2026. This marks a significant drop from a peak of $3.5 billion in February 2025, indicating that large holders are currently less active in accumulating XRP.

Increased Exchange Deposits

In addition to the waning whale activity, there has been a notable increase in XRP deposits on exchanges, totaling 6.05 billion XRP over the past month, the highest in seven months. Binance alone accounted for 2.46 billion XRP, roughly 40% of the total. While rising deposits can indicate selling pressure, they may also reflect asset redistribution and increased trading activity.

Stalled ETF Demand

Furthermore, demand for XRP exchange-traded funds (ETFs) has diminished, with a net outflow of $1.84 million reported in the week ending October 16. This ended a 13-week streak of inflows, with total net assets dropping from a peak of $1.77 billion on September 25 to $1.48 billion. The current inflow for October stands at just $10.25 million, significantly lower than the $121.4 million recorded in September.

Historically, October has not been favorable for XRP, with the token closing lower in eight of the last 13 Octobers. Analysts suggest that without renewed participation from whales or an uptick in ETF inflows, XRP may continue to struggle in the near term.