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XRP Institutional Accumulation Signals Bullish Momentum Despite Short-Term Pressure

XRP Institutional Accumulation Signals Bullish Momentum Despite Short-Term Pressure

Author:
XRP News
Published:
2025-10-25 22:03:41
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[TRADE_PLUGIN]XRPUSDT,XRPUSDT[/TRADE_PLUGIN]

XRP has demonstrated remarkable resilience in recent trading sessions, stabilizing near crucial support levels despite facing significant selling pressure. Between October 16-17, 2025, the cryptocurrency experienced a modest 2% decline from $2.41 to $2.36, while maintaining robust daily trading volumes exceeding $150 million. This price stability amid volatility underscores the asset's underlying strength and growing institutional interest. The most notable development during this period has been the strategic accumulation by institutional traders, who appear to be positioning themselves for potential future gains. This institutional confidence contrasts with the behavior of long-term holders, who have reduced their positions by approximately 34% over a two-week period. Data from the Hodler Net Position Change reveals a significant decrease from 163.7 million to 107.8 million XRP, indicating profit-taking or portfolio rebalancing by veteran investors. The convergence of institutional accumulation and long-term holder distribution creates a fascinating market dynamic that suggests both short-term caution and long-term optimism. Market analysts are closely monitoring whether institutional demand can offset the selling pressure from long-term holders, potentially creating a foundation for the next upward price movement. The current price level around $2.36 appears to be serving as a critical technical support zone, with institutional buyers stepping in to prevent further declines. This pattern of accumulation during price dips often precedes significant bullish movements in cryptocurrency markets. The substantial trading volume indicates strong market participation and liquidity, which could facilitate larger price moves in either direction. As the market digests these conflicting signals, the resilience shown by XRP at current levels suggests that the digital asset may be building momentum for its next major price trajectory. The institutional interest particularly highlights growing confidence in XRP's fundamental value proposition and regulatory clarity, which has been a key concern for investors in previous years.

XRP Shows Resilience Amid Institutional Accumulation and Selling Pressure

XRP's price stabilized NEAR a critical support level as institutional traders began accumulating the asset despite recent selling pressure. Between October 16–17, the token dipped 2% from $2.41 to $2.36, with daily trading volume surpassing $150 million. Long-term holders reduced their positions by 34% over two weeks, as indicated by a sharp decline in the Hodler Net Position Change from 163.7 million to 107.8 million XRP.

Derivative markets signaled renewed optimism, with open interest rebounding to $1.36 billion. Traders appear to be rebuilding long exposure, possibly anticipating quarter-end speculation around ETF developments and a softer macroeconomic outlook. Over the past 24 hours, XRP traded within a tight $0.16 range, showing 7% intraday volatility. Strong spot demand emerged near $2.31, while repeated rejections at $2.47 highlighted persistent supply pressure from short-term profit-takers.

Technical analysis suggests XRP is consolidating between $2.31 and $2.47, with $2.35 acting as a pivotal zone. Volume clusters at this level hint at institutional participation, providing a foundation for potential upward movement.

XRP Price Extends Decline Amid Bearish Market Sentiment

XRP continues its downward trajectory, slipping below the $2.40 support level as bearish momentum intensifies. The digital asset now trades beneath both its 100-hour moving average and a newly formed trendline resistance at $2.40, signaling potential for further losses.

The cryptocurrency briefly touched $2.287 before consolidating, with any recovery attempt stalling near the 23.6% Fibonacci retracement level. Market observers note that a decisive break above $2.50 WOULD be required to shift the current negative outlook, while failure to hold $2.28 could accelerate selling pressure.

Trading activity on Kraken shows the XRP/USD pair mirroring broader market weakness, with Bitcoin and ethereum similarly retreating from recent highs. Technical indicators suggest limited upside potential unless the price can reclaim the $2.467 midpoint of its recent decline.

XRP Faces Downside Risk as Bulls Struggle to Break Key Resistance

XRP remains under selling pressure, with its price trapped below critical resistance levels. The token currently trades at $2.27, reflecting a 6% daily decline and a 19% weekly drop. Market participants are closely monitoring two technical barriers: the $2.4 level (a former support turned resistance) and the $2.8 Fibonacci retracement zone.

Analyst Lark Davis highlights the significance of a weekly close above $2.8 to avert further downside. The daily chart shows concerning signals, with the 50-day moving average crossing below the 100-day MA—a pattern that preceded three sharp declines earlier this year, including one 46% plunge.

Momentum indicators continue to weaken, suggesting bears may maintain control unless buyers can force a decisive breakout. The market appears to be at an inflection point, where failure to reclaim higher levels could trigger another leg down in XRP's valuation.

Ripple Labs Leads $1B Fundraise for XRP Treasury Amid Market Volatility

Ripple Labs is spearheading a $1 billion fundraising initiative through a special purpose acquisition company (SPAC) to establish a digital asset treasury (DAT) focused on accumulating XRP tokens. Despite recent market turbulence, the MOVE underscores Ripple's commitment to advancing its strategic objectives.

The fintech giant will contribute a portion of its substantial XRP holdings to the new DAT. With 4.74 billion XRP ($11 billion) in direct custody and nearly 36 billion in escrow, Ripple controls over 40% of the token's total supply. This positions the company as a dominant force in the XRP ecosystem.

Separately, Ripple announced a $1 billion acquisition of treasury software provider GTreasury, signaling its ambition to disrupt the $120 trillion corporate treasury payments market. "Astounding amounts of cash remain trapped in outdated payment systems," said CEO Brad Garlinghouse, highlighting the opportunity for blockchain-based solutions.

XRP Price Prediction and the Rise of Remittix as a Hedge Option

XRP's price action remains a focal point for traders, with current levels hovering around $2.34. Analysts suggest a breakout above $3.10 could propel the token toward $3.30, while a drop below $2.85 may see it retreat to $2.70. Long-term projections place XRP between $3.03 and $4.84 by 2026.

Amidst this volatility, XRP holders are diversifying into Remittix, a payments-focused altcoin offering built-in utility and rewards. Unlike XRP's reliance on regulatory developments, Remittix emphasizes a crypto-to-fiat transfer network, positioning itself as a growth play. The project's beta wallet is live, complemented by a 15% USDT referral program and a $250,000 giveaway. Listings on BitMart and LBank underscore its momentum, with another exchange listing imminent.

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