XRP has come under intense selling pressure after dropping below the critical $2 level, triggering a swift and sharp reaction from major holders. In just 48 hours, whale addresses unloaded over 250 million XRP—worth more than $480 million—reversing nearly three weeks of steady accumulation. At the same time, newly launched Spot XRP ETFs in the U.S. are showing early signs of aggressive institutional demand, potentially shifting XRP’s long-term supply dynamics.
Whale Selling Hits $480 Million as XRP Drops Below $2
XRP’s market outlook weakened sharply as its price fell below the key $2 level. The drop triggered a strong wave of selling from large holders. Addresses with 10 to 100 million XRP sold more than 250 million tokens in just 48 hours. The total value of this transaction exceeded $480 million.
This selling spree marked a shift from nearly three weeks of accumulation. Whales had supported the price through consistent buying. The reversal suggests a rapid change in sentiment and has contributed to increased downside pressure on XRP’s price.
MVRV Indicator Turns Negative as Volatility Rises
Macro metrics show weakening market structure. The MVRV Long/Short Difference, an indicator that tracks long-term versus short-term profitability, has turned negative. This signals that long-term holders are now at a loss.
When long-term profitability falls, short-term holders often dominate market action. If prices rebound, these traders may sell quickly to capture gains. This can suppress recovery momentum and cause increased price swings.
XRP has fallen 23% over the past 11 days, currently trading at $1.92, below the $2.00 psychological support and under $1.94 resistance. Analysts suggest that failure to reclaim $2 could lead to a further drop toward $1.79.
Spot XRP ETFs Begin Trading as Analysts Forecast Strong Inflows
Despite short-term price weakness, institutional interest appears to be growing. Multiple Spot XRP ETFs have started trading across the United States. ETF issuers are preparing to accumulate XRP, which could tighten the token’s available supply.
Market analyst Chad Steingraber released accumulation models to estimate ETF demand. In one projection, if 12 ETF issuers buy 3 million XRP daily, the total could reach 8.64 billion XRP per year. A more aggressive model assumes daily purchases of 6 million XRP per fund, resulting in 17.28 billion XRP being absorbed annually.
Steingraber noted, “The entire XRP public supply will be gone unless the price goes astronomically high.” This projection assumes consistent inflows and no outflows.
Large Institutions Yet to Join XRP ETF Market
So far, major institutions like BlackRock have not entered the XRP ETF space. The firm has confirmed that it has no current plans to file for a Spot XRP ETF. However, other issuers such as Grayscale, Bitwise, CoinShares, and WisdomTree have launched or filed for products.
Bitwise’s Spot XRP ETF saw 5.82 million XRP in inflows on its first trading day. If similar daily averages continue across issuers, XRP demand could rise quickly. This scenario would reduce available supply and may put upward pressure on prices once selling eases.
However, current whale activity and macro signals suggest more short-term downside unless accumulation resumes and the $2 level is reclaimed. Until then, bearish sentiment may continue to dominate XRP’s near-term outlook.
