On-chain data from CryptoQuant analyst Arab Chain reveals a notable slowdown in institutional accumulation of XRP on Binance during May. The accumulation momentum indicator has slipped to -0.0059, reversing the positive trend seen in April. Despite this, XRP price remains near $1.38, showing resilience.
April Bought Optimism, May Brought Caution
In April, XRP rallied to $1.45 while the accumulation metric climbed into positive territory. Arab Chain noted that the indicator improved faster than XRP's price, a pattern that typically signals institutions positioning ahead of broader momentum. However, May witnessed a sharp reversal: the indicator turned negative and has stayed there since.
No Panic Selling, Just Pause
Arab Chain stressed that the current reading does not imply aggressive institutional selling. The -0.0059 level is far shallower than the deeply negative readings earlier this year. Large investors have largely kept their existing XRP positions, simply halting new deployments. This suggests a "wait-and-see" stance rather than a full retreat.
Price Stability Offers Clues
XRP's ability to hold above $1.38 despite weaker accumulation indicates that selling pressure remains contained. Institutions may be waiting for clearer market signals before deciding their next move. If XRP can build a base and the accumulation indicator turns positive again, the April trend could resume. If not, further cautious trimming might occur.