XRP has recently faced a notable decline in its market value, sparking concerns among investors. This downturn appears to be driven by a confluence of factors, ranging from significant whale sell-offs to a noticeable erosion of its once-touted institutional appeal.
Whales Drive Downward Momentum
Recent data reveals a massive exodus of XRP tokens by large holders, commonly referred to as "whales." Over the past ten days alone, these significant players liquidated more than 470 million XRP, with total exits nearing one billion tokens since late July. This substantial selling pressure has directly contributed to XRP's bearish price action, marked by a consistent series of lower highs and lows. The intensified selling is further exacerbated by a surge in short positions across derivatives markets, with high-leverage shorts clustering at critical price points, signaling potential for further declines as liquidation clusters accumulate below the current trading levels.
Institutional Interest Wanes Amidst Competition
Beyond the technical selling pressure, XRP's woes are compounded by a discernible decline in its institutional appeal. Sentiment among smart money and large players has skewed strongly negative, reflecting a bearish bias. Critically, reports indicate that major financial entities like Swift and JP Morgan are increasingly favoring Chainlink (LINK) over XRP for their core product applications. This shift directly challenges XRP's long-standing narrative as a preferred solution for institutional cross-border payments, with market observers noting that XRP's "core product just has not seen meaningful traction with institutions," positioning Chainlink as a clearer winner in this competitive landscape.
