XRP Price Declines as US-Canada Trade War Escalates, But Whales Are Loading Up

XRP has been caught in a brutal selloff, shedding 17% in three days as geopolitical tensions weigh on financial markets.

XRP price dropped by 17% over three consecutive losing days, hitting a low of $2.60 on Feb. 2.

The decline came amid a broader selloff in financial markets following escalating trade tensions between the US and Canada.

US President Donald Trump imposed new tariffs on Canadian exports, leading Canadian Prime Minister Justin Trudeau to announce retaliatory measures. The uncertainty rattled global markets, sending Bitcoin (BTC) to $96,000, as investors moved into gold and other safe-haven assets.

XRP’s short-term price action appears weak, but on-chain data suggests long-term accumulation by whales and institutions.

CryptoQuant data shows that XRP reserves on Binance fell from 3.04 billion to 2.55 billion between Jan. 16 and Feb. 2. This means that 490 million XRP, worth approximately $1.3 billion, was withdrawn from Binance.

A drop in exchange reserves typically indicates that investors are moving funds into cold storage, reducing the available supply on exchanges. This could serve as a buffer against further price drops.

Moreover, analysts speculate that the declining exchange reserves could be tied to institutional investors accumulating XRP ahead of potential XRP ETF approval.

Despite the recent dip, some analysts are convinced that XRP is on the verge of a monster rally.

Egrag Crypto predicts a 70% price jump soon, which would send XRP to $5-$6 and push its market cap to $300 billion.

But that’s just the beginning. If XRP follows past market cycles, Egrag believes it could explode to $20 per coin. And in an ultra-bullish scenario? A $4 trillion market cap and an eye-watering $70 XRP price.

Sound crazy? Maybe. But with institutional adoption growing, regulatory clarity improving, and whales accumulating, it’s not impossible.

Crypto analyst CrediBULL Crypto also pointed out that XRP’s chart structure looks primed for a breakout, while Mikybull Crypto called the current price action the calm before a massive rally.

XRP’s price has taken a hit, but whales are buying, exchange reserves are shrinking, and institutions are quietly accumulating.

If ETF approvals, institutional demand, and regulatory clarity fall into place, XRP could be one of the biggest comeback stories in crypto.

Will it hit $5, $10, or even $70? Only time will tell. But one thing is clear—smart money is paying attention.