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XRP ETF Approval Fails to Stem Whale-Driven Selling Pressure

XRP ETF Approval Fails to Stem Whale-Driven Selling Pressure

Author:
XRP News
Published:
2025-12-20 20:29:31
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Despite the landmark approval of an XRP exchange-traded fund, the cryptocurrency continues to face significant selling pressure from large holders. On-chain analytics reveal whale wallets dominating exchange inflows, with institutional-scale transfers flooding Binance. CryptoQuant data shows 100K-1M XRP and 1M+ XRP wallet bands account for most exchange deposits - volumes incompatible with retail activity. This persistent selling by major holders, even in the face of a major regulatory milestone like an ETF approval, presents a complex narrative for XRP's near-term price trajectory. While the ETF structurally opens the door for massive new institutional capital and mainstream adoption, creating a powerful long-term bullish case, the current market dynamic is dominated by profit-taking and portfolio rebalancing from existing large stakeholders. This highlights a critical phase where short-term supply overhang from early investors clashes with the long-term demand thesis enabled by the new financial product. For bullish practitioners, this creates a potential accumulation opportunity, as whale selling pressure may provide attractive entry points before the anticipated institutional inflows from the ETF fully materialize. The key will be monitoring on-chain metrics for a slowdown in exchange inflows from these large wallets, which could signal the absorption of this selling pressure and pave the way for the next leg up, driven by the ETF's accessibility to traditional finance.

XRP ETF Approval Fails to Stem Whale-Driven Selling Pressure

Despite the landmark approval of an XRP exchange-traded fund, the cryptocurrency continues to face significant selling pressure from large holders. On-chain analytics reveal whale wallets dominating exchange inflows, with institutional-scale transfers flooding Binance.

CryptoQuant data shows 100K-1M XRP and 1M+ XRP wallet bands account for most exchange deposits - volumes incompatible with retail activity. This persistent sell-side pressure suggests institutional players remain unconvinced by the ETF's long-term bullish case.

The market appears caught between two narratives: regulatory progress symbolized by the ETF approval versus the harsh reality of whale distribution. As one trader noted: 'When the tide goes out, you see who's been swimming naked.'

Spot ETF Inflows Drive XRP Potential Breakout Toward $1.99 Target

XRP surged 4.43% to $1.92, with trading volume hitting $4.39 billion as six consecutive weeks of Spot ETF inflows lifted net assets to $1.14 billion. The hidden bullish divergence suggests underlying strength despite recent price stagnation.

Technical indicators point to a critical juncture, with XRP testing the $1.99 resistance level within a descending broadening wedge pattern. The convergence of 20-day and 50-day EMAs signals potential for an upward breakout, marking a pivotal moment for the token's recovery trajectory.

XRP ETFs Gain Traction, but Payments Infrastructure Tells the Deeper Story

The US XRP ETF market has surged to $941.7 million in assets under management, with Grayscale, Canary Capital, Franklin Templeton, and Bitwise leading the charge. This represents a near-tripling of assets since November, signaling intense institutional interest in a narrow timeframe.

Yet the real story lies beyond ETF flows. RippleNet's $15 billion in 2024 payment volume dwarfs ETF holdings, highlighting a divergence between speculative demand and real-world utility. The question isn't whether XRP can attract capital—it's whether its payment rails can sustain growth when ETF inflows plateau.

Cross-border settlements and liquidity corridors now face their proving ground. With XRPL's on-chain liquidity at $293 million, the ecosystem must demonstrate it can scale beyond the ETF wrapper's temporary momentum.

XRP Defies Japan Rate Shock as ETF Inflows Bolster Bullish Structure

XRP demonstrated resilience during Asian trading hours, briefly dipping toward $1.80 before recovering to $1.92–$1.94. The token's swift rebound defied pressure from Japan's rate hike, with analysts noting institutional accumulation via spot ETF inflows as a key driver.

TradingView analyst subhikarkar55 identified $1.8577 as a near-term liquidity zone, suggesting potential volatility before a push toward $2.0735. Market depth improvements and retail participation are reinforcing the mid-$1.80 support level.

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