The digital asset XRP finds itself in a precarious position, caught between two powerful and opposing market forces. As the first regulated U.S. ETFs for the cryptocurrency begin trading, a wave of selling from major holders is simultaneously putting intense downward pressure on its price. The central question for investors is whether the institutional demand generated by these new financial products can overcome the significant sell-side pressure.
Institutional Products Enter the Arena
A new chapter for XRP is beginning with the launch of several spot ETFs, made possible by the resolution of the SEC litigation in August 2025. The debut was marked by the Canary Capital XRPC ETF, which recorded an impressive $60 million in trading volume on its first day. This was quickly followed by the launch of the Franklin Templeton XRP ETF, with other prominent asset managers like Bitwise, 21Shares, and CoinShares preparing their own offerings.
This institutional embrace coincides with growth in the Ripple ecosystem. The native stablecoin, RLUSD, recently surpassed a $1 billion market capitalization. Furthermore, development activity is accelerating with projects such as XRP Tundra, which is leveraging the Layer-2 solution GlacierChain to advance the network’s DeFi integration.
Significant Selling Pressure from Large Holders
While the ETF narrative builds, on-chain data reveals a concerning trend from major investors, often referred to as “whales.” Over a 48-hour period, these large entities moved approximately 200 million XRP onto exchanges, a transaction pattern that typically precedes a sale. The total value of XRP transferred to trading platforms exceeded $431 million.
Should investors sell immediately? Or is it worth buying XRP?
The immediate result of this selling pressure has been a sharp price decline. XRP lost more than 15% over the week, driving its value down to a critical support level of $2.15. Data from Glassnode underscores the current pain for many holders, showing that 41.5% of all XRP addresses are now holding the asset at a loss—the highest proportion since November 2024.
Conflicting Signals Create Market Uncertainty
The market is currently sending mixed signals, leaving analysts divided on the short-term trajectory. Despite the sell-off, blockchain activity shows a notable surge in large transactions, with 716 separate whale transfers each valued at over $1 million. This is the highest number of such transactions recorded in four months, potentially indicating that some large players are accumulating positions in anticipation of a rebound.
Technical indicators add another layer of complexity. The Santiment MVRV indicator has moved into what is historically considered a “good buying zone,” a level that has often preceded price recoveries. Trading volume also exploded by 71% to reach $7.4 billion, suggesting intense trader interest. However, this optimism is tempered by a significant technical risk: a decisive break below the $2.15 support level could trigger a further decline toward $1.94, or even as low as $1.58.
The market now watches to see if the classic “buy the rumor, sell the news” pattern will repeat for XRP, as it has after previous major announcements, or if the sustained inflows from the new ETF products will provide the foundation for the next significant rally.
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