ZachXBT slams XRP, whales keep buying

August 28, 2025

 

Reading time: 5 minutes

ZachXBT calls XRP “exit liquidity” as whales buy in

Key points:

  • Blockchain sleuth ZachXBT dismissed XRP holders as “exit liquidity,” reigniting debate over Ripple’s real utility.

  • Despite criticism, whales added $750M in XRP while exchange reserves hit a one-year low, signaling possible breakout momentum.

News - Popular blockchain investigator ZachXBT, known for tracing the $1.4B Bybit hack to North Korea’s Lazarus Group, has ignited controversy by declaring he will no longer support the XRP community.

In posts on X, he argued Ripple holders “provide nothing of value to the industry except exit liquidity for insiders,” grouping XRP with Cardano, Pulsechain, and Hedera. He also criticized Ripple for failing to fund public goods, warning that XRP investors face added risks with limited institutional protections.

His comments drew swift backlash from traders and analysts. Defenders highlighted Ripple’s partnerships and the XRP Ledger’s trust line system, which allows stablecoin transfers without XRP. Ripple CTO David Schwartz clarified that this feature was intentional, not a loophole, dating back to the ledger’s 2004 design.

Whales and market structure - While sentiment divides the community, whale wallets holding 10M–100M XRP have quietly accumulated 250M tokens worth $750M since mid-August. At the same time, XRP exchange balances fell 13.3% in three weeks to a one-year low, easing near-term selling pressure. Analysts note that in past cycles, similar drops preceded rallies.

Price outlook - XRP has traded around $3.01, with resistance at $3.16 and a breakout level at $3.33. Short-term targets range from $4 to $6, while cycle-top forecasts reach as high as $20 if momentum sustains. Institutional inflows of $25M daily and new products like Gemini’s XRP-rewards Mastercard add depth to the bullish case.

Profit-taking mounts as Solana kicks off Alpenglow vote

Key points:

  • SOL rallied near $216, but exchange balances jumped 6.47% ($418M), raising the risk of profit-taking.

  • Developers launched voting on the Alpenglow upgrade, aiming to cut finality to under 200ms and boost resilience.

News - Solana’s price climbed to around $216 this week, extending August gains of more than 35%. Yet on-chain data signals caution. Glassnode reports that exchange balances jumped by nearly 1.94M SOL in five days, equivalent to $418M in potential sell pressure.

At the same time, SOPR hit a three-month high of 1.05, confirming active profit-taking that could weigh on the rally. Analysts warn that failure to hold above the $215 ceiling could trigger a pullback toward $200, while a decisive close above $223 may open a path to $247.

Alpenglow upgrade under vote - Amid market jitters, developers have initiated validator voting on the Alpenglow consensus proposal, touted as Solana’s most ambitious upgrade since launch.

The overhaul would replace Proof-of-History and TowerBFT with Votor and Rotor, cutting block finality from 12.8 seconds to as little as 150 milliseconds. A “20+20” resilience model aims to keep the chain live even if 20% of validators are malicious and another 20% offline. Early tallies show just over 10% validator support, with a two-thirds majority needed for passage.

Trader exodus clouds sentiment - Adding to mixed signals, data from Dune shows Solana DEX traders have dropped 90% since October 2024, plunging from over 8M wallets to under 1M.

While some analysts argue retail traders have abandoned the chain, others see the decline as bots exiting, calling it a healthier long-term reset. Despite the exodus, daily DEX volumes remain steady at $3–$5B, suggesting institutional and whale dominance is holding the network’s liquidity base.

Outlook - With SOL trading near $215, the next move hinges on whether bulls defend key support while validators back Alpenglow. A breakout could reinforce Solana’s case as a Web2-speed blockchain, but sellers remain active.

Bitcoin faces fresh sell pressure as bulls defend $112K

Key points:

  • Bitcoin traded near $112,900 as spot and futures data showed mounting sell pressure, raising the risk of a dip below $111,900.

  • On-chain indicators flagged profit-taking, while whale sales and short-term holder resistance added hurdles for a clean breakout.

News - Bitcoin is once again under pressure as on-chain signals point to sustained selloffs across spot and futures markets.

CryptoQuant data shows the Spot Taker CVD turned negative after months of buyer dominance, while the Taker Buy/Sell ratio slipped to 0.91, suggesting sellers outweighed buyers in futures trading. At press time, BTC held around $112,906, just above a key support floor at $111,920.

Adding to the strain, an “OG whale” deposited 250 BTC ($28.2M) to Binance after unloading 750 BTC the previous day, according to Lookonchain. Market veteran Peter Brandt cautioned that such distribution represents classic supply pressure, warning of “double top” risks unless Bitcoin reclaims $117,500.

Still, other analysts remain upbeat. Tiger Research projected BTC could surge to $190,000 in Q3 2025, citing institutional inflows, record liquidity, and U.S. 401(k) access as game-changers. Yet the firm also flagged overbought risks, noting corrections could emerge before further upside.

Spot resistance builds - Glassnode data shows Bitcoin faces resistance around $113,600, where short-term holders may sell at breakeven. This aligns with mixed flows: ETFs and corporates continue absorbing BTC supply, but spot demand remains neutral and perpetual markets tilt bearish.

Support and downside risks - If selling intensifies, BTC could fall toward $109,267, with deeper support near $107,000, Glassnode warned. Conversely, a rebound above $115,764 could open a path toward $118,922, keeping the bullish case alive despite near-term turbulence.

Kanye West’s YZY token collapse exposes celebrity coin risks

Key points:

  • The YZY token crashed more than 80% within a week of launch, leaving around 74% of investors with losses totaling nearly $74.8 million, according to Bubblemaps.

  • Only a handful of wallets profited, with 11 addresses capturing nearly 30% of total gains, raising fresh insider trading concerns.

News - Kanye West’s Solana-based YZY token has become the latest cautionary tale in the celebrity memecoin trend.

After surging 1,400% in its first hour of trading on August 21, the token quickly collapsed by more than 80%, wiping out most retail gains. Blockchain data shows that of more than 70,000 wallets, over 51,800 incurred losses, including some traders who lost more than $1 million.

Bubblemaps revealed that while small investors bore the brunt of the collapse, insiders pocketed millions.

Thirteen wallets collectively withdrew $24 million, and just 11 wallets netted over $1 million each, accounting for nearly 30% of all profits. Some were linked to recurring memecoin “snipers,” including Hayden Davis, previously involved in the failed Libra token, and “Naseem,” who gained notoriety from Trump’s DJT token frenzy.

Celebrity hype, insider gains - The fallout deepened after West claimed his Instagram was hacked, suggesting scammers promoted a fake YZY token in parallel.

Confusion between fake and official tokens only worsened investor confidence, accelerating the crash. At one point, YZY’s valuation briefly touched $3 billion before plunging to a market cap under $550 million.

Bigger picture - The YZY saga adds to a wave of celebrity-backed tokens that surged in 2024–25 but rarely held value. Analysts warn these projects often run on hype rather than utility, leaving retail investors vulnerable. The crash has reinforced calls for stricter scrutiny of celebrity crypto endorsements, as investors demand clearer rules and protections.

Interesting facts

  • Bitcoin and Ether options expiring this week carry a massive notional value of $14.6 billion, with a pronounced skew toward Bitcoin put options, pointing to a growing appetite among traders for downside protection amid heightened market volatility.

  • Digital bank VersaBank is piloting “Digital Deposit Receipts”, a tokenized dollar deposit system, across Algorand, Ethereum, and Stellar networks in the U.S., marking a notable real-world fusion of traditional banking with blockchain rails.

  • The CME’s ether futures market has crossed a record $10 billion in open interest, with the number of large-position holders (LOIH) hitting a new high of 101, signaling a clear uptick in institutional institutional demand.

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Top 3 coins of the day

Dogecoin (DOGE)

Key points:

  • DOGE traded at $0.22, recording a 2.14% gain after bouncing between $0.22 and $0.23.

  • The Bollinger Bands showed price hovering near the midline at $0.23, while the CMF stayed negative at -0.06, signaling ongoing capital outflows.

What you should know:

Dogecoin held steady near $0.22 after testing intraday highs of $0.23. The Bollinger Bands highlighted resistance at $0.24 and support at $0.21, with the price trading just under the midline at $0.23. Despite the positive candle, the Chaikin Money Flow (CMF) closed in negative territory at -0.06, suggesting that capital outflows persisted. Daily trading volume stood at 517.78 million, lower than the spikes seen in July. Beyond technicals, sentiment was shaped by renewed ETF speculation following Grayscale’s amended Dogecoin Trust filing and reports of whale accumulation, with large holders adding over 1B DOGE this month. Traders will be watching if DOGE can break past $0.24 resistance, or if selling pressure drags it back toward $0.21 support.

Key points:

  • BNB traded at $871, gaining 1.91% after moving between $850 and $873 in the session.

  • The 20-day MA stayed above the 50-day at $846 and $791, while the RSI held at 58.00 with steady trading volume.

What you should know:

BNB extended its uptrend from mid-July, closing near $871 after intraday highs of $873. Price remained above both the 20-day and 50-day moving averages, keeping the bullish crossover intact. The Relative Strength Index (RSI) at 58 reflected moderate strength, leaving space for further upside, while daily volume of 91.78K suggested consistent market activity even as participation cooled from early August levels. On the fundamentals front, institutional adoption supported sentiment, with corporate treasury allocations to BNB surpassing $100M in recent weeks. At the same time, BNB Chain’s ecosystem growth, including developer incentive programs and tokenized equity integrations, has boosted long-term utility. Traders now watch the $900 resistance as the next key hurdle, while $846 serves as short-term support.

Key points:

  • LINK traded at $23.82, edging up 0.17% after oscillating between $23.56 and $24.46.

  • The Parabolic SAR flipped bearish above the candles at $27.39, while the MACD histogram stayed negative at -0.34 with lower volumes.

What you should know:

Chainlink’s price steadied near $23.8 following its retreat from last week’s peak above $27. The Parabolic SAR placed resistance overhead, signaling continued selling pressure, while the MACD confirmed a bearish crossover with the histogram in negative territory. Trading volume cooled to 2.81 million, well below the surges seen during August’s rally, reinforcing a phase of consolidation. Beyond technicals, the pullback reflected profit-taking after a 77% run-up over the past two months. Broader conditions also weighed on sentiment, with crypto derivatives volumes dropping over 25% in 24 hours, highlighting reduced liquidity and speculative appetite. For now, $23 remains a critical support, while the $25–27 zone is the resistance cluster that needs clearing for bullish momentum to resume.

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