XRP Faces Price Challenges Despite Strong ETF Momentum

XRP Faces Price Challenges Despite Strong ETF Momentum

XRP has faced intense price volatility in 2025, witnessing a decline from its all-time high of $3.65 in July, despite the successful launch of spot XRP exchange-traded funds (ETFs). This divergence between the positive performance of ETFs and XRP's price action raises critical questions about the underlying factors impacting the asset's market dynamics.

Whale Activity Drives Price Pressure

Analyst PelinayPA from CryptoQuant highlights the persistent selling pressure from large holders, or whales, as a primary factor behind XRP's subpar price performance. Data indicates that whales holding between 100,000 to 1 million XRP, along with those possessing over 1 million, have been consistently selling their holdings.

These major holders appear to have strategically offloaded their positions as anticipation for ETF approvals surged, creating significant sell-side liquidity. Such selling pressure has hindered the buying momentum typically associated with positive developments like ETF launches.

ETF Success Fails to Lift Prices

The stark contrast between XRP's price movement and ETF performance is noteworthy. Following their mid-November launch, US-based spot XRP ETFs have drawn in more than $1.14 billion in total net assets without experiencing any negative outflows. This sustained institutional interest signals a robust underlying demand for regulated XRP exposure.

However, despite this institutional accumulation, upward price momentum has been elusive, underscoring the influence of whale distribution on market dynamics.

Technical Outlook and Support Levels

PelinayPA has pinpointed critical price levels for XRP moving ahead. The $1.82 to $1.87 range represents a significant support zone that could dictate the asset's near-term trajectory. Should the current rate of whale exchange inflows persist, the analyst anticipates that XRP might experience a further decline, potentially dropping to the $1.50 to $1.60 range.

These forecasts illuminate the ongoing tension between institutional ETF demand and the distribution patterns exhibited by whales in the market.

Market Implications

The XRP situation exemplifies a broader challenge facing cryptocurrency markets: the ability of established holder behavior to temporarily overshadow positive fundamental events. Typically, ETF launches are considered markers of mainstream adoption and improved accessibility—factors that have benefited Bitcoin and Ethereum in the past. However, XRP's current scenario reveals that prevailing supply distribution patterns can impede expected price appreciation.

In the coming weeks, the market will be tested to see if ETF accumulation can eventually counteract whale selling pressure or if XRP will face further declines before experiencing a sustainable price recovery.

Why It Matters

For Traders

Understanding XRP’s current price dynamics can help traders anticipate potential short-term moves and capitalize on volatility while monitoring whale activity.

For Investors

Long-term investors should remain vigilant as the interplay between institutional demand and whale behavior may present opportunities for repositioning strategies in their portfolios.

For Builders

Developers should keep an eye on market trends and sentiment surrounding XRP and ETFs, as these factors can influence future project developments and ecosystem growth strategies.