Despite the successful launch of XRP exchange-traded funds (ETFs), the price of the cryptocurrency has remained below the key $2 psychological level, trading around $1.93 with a 4% daily gain. On-chain analytics firm CryptoQuant reveals that this persistent weakness stems from sustained selling by large holders, or 'whales,' rather than retail investors.
According to a report by CryptoQuant analyst PelinayPA, wallets holding between 100,000 and over 1 million XRP have been consistently transferring large amounts of tokens to the Binance exchange. Historically, such exchange inflows signal an intent to sell. The data shows that following each major inflow spike, XRP forms a pattern of lower highs and lower lows, indicating that supply is overwhelming demand.
Contrary to expectations, the approval of XRP ETFs has not triggered a sustained rally akin to Bitcoin's ETF-driven surge. Instead, CryptoQuant suggests whales who accumulated XRP in anticipation of the ETF narrative used the approval news as an exit opportunity, providing sell-side liquidity to the market. This controlled, consistent selling has slowly pushed the price lower in the absence of a strong wave of new spot buyers to absorb the extra supply.
Despite the price pressure, XRP ETFs have seen notable success, accumulating over $1.2 billion in net assets within their first month of trading, signaling building long-term institutional interest.
The report highlights key technical levels for XRP. The primary support zone is between $1.82 and $1.87, where the price has previously stabilized and attracted some buying interest. A failure to hold this support could see XRP slide toward the $1.50 to $1.66 range. For a short-term recovery, XRP needs to consolidate above $1.85, build support near $1.95, and achieve a clear break above the $2 level. However, analyst PelinayPA cautions that expecting a significant bullish move before exchange inflows decline would be unrealistic.
