Institutional ETF Demand Clashes with Whale Selling in XRP Market

While the price of XRP appears stagnant, a compelling battle is unfolding beneath the surface. A standoff has emerged between large-scale holders offloading their positions and institutional investors accumulating through exchange-traded funds (ETFs). This tug-of-war raises a critical question for the asset's future trajectory.

Beyond price action, operational and regulatory progress bolsters XRP's case. Ripple's stablecoin, RLUSD, has achieved a market capitalization of $1.26 billion within a single year and is already being integrated by partners, including BlackRock, for transaction settlement. Furthermore, the regulatory overhang has lightened significantly. Following the SEC's withdrawal of its appeal and the conditional approval of a national trust charter by the OCC, legal risks for 2025 have diminished considerably.

Market experts point to January 2026 as a potentially pivotal moment, when the draft Market Structure Bill is slated for negotiation. Historically, XRP has shown sensitivity to legislative advancements. Until then, the market remains in a state of equilibrium.

Should investors sell immediately? Or is it worth buying XRP?

Persistent Technical Weakness

From a chart perspective, momentum is notably absent. The price has repeatedly failed to break the resistance zone around $1.95 and currently trades at $1.88, hovering near key support levels. The significant distance from the 50-day moving average at $2.12 reinforces the short-term bearish trend. Although the RSI reading of 28.8 indicates oversold conditions, a catalyst for a sustained reversal has yet to materialize. The current low volatility suggests investor indecision more than outright panic.

Strong Institutional Inflows Tell a Different Story

Contrasting the weak spot price action, professional investment vehicles signal robust demand. The U.S. market for XRP spot ETFs has now recorded its sixth consecutive week of net inflows, with the latest week seeing over $82 million. Analysts interpret this trend as evidence that pension funds and insurance companies are increasingly seeking regulated exposure to blockchain-based payment infrastructure. This positions XRP differently from assets like Bitcoin; its appeal to institutions is tied more to its utility in facilitating transactions rather than as a store of value.

The immediate outlook suggests a continuation of the current consolidation. The ongoing contest between forces will likely keep prices range-bound between $1.89 and $1.95, as ETF purchases work to absorb the selling pressure from major holders.