The excitement surrounding XRP exchange-traded funds (ETFs) was widely anticipated to usher in a new era of institutional demand and propel the altcoin's price upwards. However, recent on-chain analytics paint a starkly different picture, revealing persistent selling pressure from major holders that has largely nullified any ETF-driven optimism.
Whale Activity Dampens ETF Hopes
Data from CryptoQuant, an on-chain analytics platform, indicates a significant divergence from the expected positive market response. Analysis of XRP whale addresses, particularly their activity on the Binance exchange, shows a concerning trend. Recent deposits of XRP to exchanges are overwhelmingly concentrated in large tranches – specifically, volumes ranging from 100,000 to 1 million XRP and transactions exceeding 1 million coins. These movements are not characteristic of retail investors but rather large holders preparing for distribution or outright selling, effectively increasing the available supply on the market.
Supply Overwhelms Demand, Price Targets Downward
This influx of whale-driven supply has demonstrably stifled any potential rallies. The price action for XRP has consistently shown lower highs and lower lows following these substantial exchange deposits. The primary reason for this bearish pattern is a comparatively low number of new spot buyers on exchanges like Binance, meaning even moderate selling pressure is sufficient to cap upward movements. Currently, XRP faces strong selling resistance around the $1.95 mark. Should large inflows persist, market data suggests the cryptocurrency could test support levels between $1.82 and $1.87, with a potential decline further into the $1.50 to $1.66 range. While inflows into Spot XRP ETFs have been noted, totaling $82.04 million in a recent week according to SoSoValue, their impact has been limited to potentially preventing deeper losses rather than stimulating a price recovery. It appears whales capitalized on the ETF-related attention as an opportune moment to offload their holdings, ultimately dampening the bullish sentiment.
