XRP has reached a significant institutional milestone with the launch of two ETFs this week and two more in the pipeline for Monday. Despite this, the altcoin is down 5% in seven days. The contradictory price action can be explained by examining the wallets of major holders.
The most convincing explanation for this persistent weakness lies in the on-chain activity of the largest holders. Blockchain data reveals an aggressive selling trend among XRP whales throughout the week. Over the last 48 hours alone, wallets holding between 1 million and 10 million XRP have liquidated more than 250 million tokens, representing a countervalue exceeding $528 million at the current price.
This massive selling pressure from whales creates a structural imbalance in the order book. Whales possess disproportionate influence over XRP’s liquidity and market sentiment. Their ability to absorb or provide enormous volumes in just a few transactions gives them informal market-making power. When these major players unload their positions in a sustained manner, it typically signals a lack of conviction regarding short-term prospects.
The timing of these sales raises questions. Why would these large holders choose to sell precisely when institutional infrastructure is being established? Several hypotheses are circulating: profit-taking after the late 2024 rally, reallocation toward other better-performing assets, or anticipation of a deeper correction before a potential rebound. If this selling flow continues, the critical support at $2.08 could give way, opening the door to a test of $2.02 or even a break below the psychological threshold of $2.00.
Despite the selling pressure from whales, XRP’s network activity offers an encouraging counterbalance. The number of new addresses has reached a monthly peak, coinciding with the launches of the first XRP ETFs, proving that retail and institutional interest remains solid despite the price decline. This ease of access via ETFs, eliminating the need to manage wallets or seed phrases, attracts a new wave of investors.
The imminent launches of GXRP (Grayscale) and XRPZ (Franklin Templeton) could generate significant inflows capable of offsetting whale selling pressure. Grayscale manages tens of billions, while Franklin Templeton oversees $1.5 trillion in assets, bringing legitimacy and massive distribution. This dynamic could support the market precisely when whales are selling aggressively.
XRP sits at a critical juncture: the support at $2.08 is the determining level. Above it, a rebound remains possible, especially if ETF inflows exceed outflows from large holders. A recovery above $2.20 would open the path toward resistance at $2.28. Conversely, a break below $2.08 could accelerate the decline toward $2.02, then $1.95, with a major risk: Falling below $2.00, which would be a strongly bearish psychological signal.
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