XRP whales are continuing to offload tokens onto exchanges even as spot ETF assets reach $1 billion, weighing on price momentum and signaling persistent supply pressure.
Key Takeaways:
- XRP whales continue moving large volumes to exchanges despite over $1 billion in spot ETF assets under management.
- Institutional ETF demand has failed to translate into sustained upside as sell-side pressure dominates.
- XRP price remains capped below key resistance, with momentum indicators signaling consolidation or downside risk.
Despite strong institutional interest reflected in XRP spot ETFs surpassing $1 billion in assets under management, on-chain data shows that large holders have continued transferring significant amounts of XRP to centralized exchanges throughout December. A new on-chain analysis on CryptoQuant from PelinayPA highlights XRP’s persistent selling pressure despite ETF milestone. These movements, commonly associated with preparation for selling, have contributed to sustained downward pressure on price.
XRP saw repeated large exchange inflows on Binance, suggesting active whale transfers. Source: CryptoQuant
Blockchain analytics platforms tracking whale behavior indicate that the pace of exchange inflows has remained elevated even after ETF-related optimism peaked. Analysts note that this dynamic has prevented XRP from establishing a sustained uptrend, as fresh demand has been consistently absorbed by sell-side liquidity from long-term holders and early accumulators.
ETF Inflows Signal Institutional Demand, but Supply Overhang Persists
The launch of U.S. spot XRP ETFs marked a milestone for the asset, with products recording steady inflows and no net outflow days since inception. This suggests institutional investors remain interested in gaining exposure to XRP through regulated investment vehicles rather than direct participation via a crypto exchange or crypto wallet.
However, market reaction has been notably muted. Analysts point out that while ETFs can reduce circulating supply over time, their impact is diminished when large holders simultaneously release tokens into the open market. As a result, ETF accumulation has so far failed to offset the immediate selling pressure generated by whale distribution, creating a disconnect between structural adoption progress and short-term price performance.
XRP Price Holding Steady with Weak Momentum
As of this writing (9:15AM UTC), XRP was trading around $1.94, reflecting modest 0.2% gain in the last 24 hours. The token exhibited a low volatile price action, particularly as it reached intraday highs around $1.95, while having touched $1.92 as its intraday lows, according to CoinGecko.
Technical momentum indicators paint a mixed picture. The Relative Strength Index (RSI) on key timeframes sits in neutral territory, suggesting neither strong oversold nor overbought conditions, while some sources like TradingView lean toward sell signals.
Outlook
The divergence between growing ETF assets and persistent whale selling underscores a critical tension in XRP’s current market structure. While institutional interest signals long-term confidence in XRP as a crypto investment vehicle, near-term price action continues to be shaped by supply-side dominance from large holders.
Looking ahead, traders and investors will closely monitor on-chain exchange inflows for the XRP tokens, ETF updates and trends, and also if XRP can go back to its key resistance levels as it serves as a confluence to a pullback. If ever whale distribution slows down, it will allow ETF demand to exert greater influence, but until such a shift occurs, XRP may remain within its current range but with the presence of downside risks.
Summary
XRP has seen continued selling pressure from large holders despite spot ETF assets surpassing $1 billion, limiting price gains as on-chain exchange inflows remain elevated and ETF demand has yet to outweigh whale distribution.
