Crypto: XRP Reaches Record Distribution, Heading For An Imminent Rebound?

The announcement by Donald Trump on March 2 to include crypto XRP in a U.S. strategic reserve alongside Solana and Cardano propelled the altcoin by +34% in 24 hours. A flash of ephemeral glory: the following day, the price retraced by 50%, while on-chain data revealed a massive outflow of institutional investors. Is crypto experiencing a classic pump and dump scenario amplified by politics, or does this pullback conceal a discreet accumulation before a rebound?

Record distribution: the whales abandon ship

The crypto XRP, stable under $0.50 for months, saw its price explode between $2 and $3 after Trump’s announcement.

A misleading signal. Ki-Young Ju, founder of CryptoQuant, identified via a bubble chart a frenzied activity at these levels. But contrary to appearances, this is not about purchases. “This is a distribution phase, not accumulation,” he emphasizes. The big wallets are selling, methodically.

Proof in support: Maartunn, an on-chain analyst, notes that the XRP whale flows (30-DMA) have reached a historic low. “They are getting rid of crypto XRP like never before,” he summarizes.

The reserves on Binance, having risen from 2.72 to 2.90 billion tokens in a matter of days, confirm this selling pressure. A paradox: the political endorsement, meant to assure, triggers distrust.

One question remains: why sell now? The answer may lie in the cycles. In the distribution phase, “smart money” secures their profits before a collapse, leaving retail investors to bear the burden. With an XRP still down -30% from its ATH, this strategy recalls patterns observed before the crashes of 2018 or 2022.

$2.50: a psychological threshold for crypto

On the technical front, opinions differ. Dom, market analyst, notes that XRP failed to maintain the VWAP at $2.70, key for a healthy trend. “Without reclaiming $2.50, any rebound will remain vulnerable,” he warns. A critical zone, therefore, where buyers and sellers clash.

Yet, Dami DeFi sees in the HTF charts a consolidation below a major resistance. “Trump has laid the groundwork. A break here will trigger price discovery,” he states.

An optimism tempered by Matt C, for whom XRP is forming an inverted head and shoulders – a bearish reversal pattern. The RSI, with its descending peaks, supports his thesis: “This rally is a liquidity trap for small wallets”.

Amid these contradictory views, one fact remains: the impact of political statements on crypto remains unpredictable. Trump has given XRP unprecedented visibility, but the fundamentals – Ripple-SEC litigations, real adoption – weigh heavier. The whales have understood this, preferring to realize quick gains rather than speculate on a hypothetical status of “strategic reserve“.