XRP at a Crossroads: Massive Whale Selling Overshadows Record Institutional ETF Demand

The recent downturn across the cryptocurrency market, driven by concerns following the latest FOMC meeting and speculation that Strategy may need to liquidate additional Bitcoin to cover dividend obligations, has also weighed heavily on XRP.

The token has fallen more than 4% over the past 24 hours and is down approximately 18% over the last month. After facing strong resistance at the $1.30 level earlier this week, XRP is now struggling to maintain support above $1.10.Adding to investor concerns, several technical indicators are beginning to signal the possibility of a deeper price correction.

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Whale Activity and Network Slowdown Raise Concerns for XRP

Large XRP holders, commonly referred to as whales, have long been a driving force behind the Ripple ecosystem, collectively controlling nearly 70% of the token's total circulating supply.

Until recently, on-chain data from CryptoQuant suggested these major investors remained confident, choosing to hold onto their positions despite XRP's recent price decline.

However, fresh data paints a different picture.According to crypto analyst Ali Martinez, citing on-chain metrics from Santiment, XRP whales have offloaded more than 30 million tokens over the past five days. As a result, their combined holdings have dropped to approximately 3.78 billion XRP.

This wave of selling is significant because whale transactions often influence broader market sentiment. Their increased selling activity not only adds immediate downward pressure on XRP's price but may also encourage smaller investors to follow suit, amplifying the bearish momentum.

Another warning sign is the sharp decline in network activity. Data from Santiment and CryptoQuant shows that active XRP addresses have fallen by nearly 50% over the past two weeks, dropping from roughly 50,000 daily active wallets to around 25,000.

On several occasions, the number of active addresses slipped below the 25,000 mark, highlighting weakening user engagement across the network.

Source:X

A Bright Spot: Institutional Demand Remains Strong

Despite the recent bearish signals, one positive trend continues to support XRP—the growing demand for spot XRP exchange-traded funds (ETFs). While Bitcoin and Ethereum ETFs have recently experienced substantial capital outflows, XRP-focused investment products have continued attracting fresh inflows.

Recent data from SoSoValue shows that XRP ETFs recorded net inflows of $2.82 million on Monday, $5.30 million on Tuesday, and $2.55 million on Thursday, while Wednesday saw no notable activity.

These consistent investments have pushed cumulative net inflows to a new record high of approximately $1.45 billion, underscoring sustained institutional confidence in XRP despite ongoing market uncertainty.