XRP Navigates ETF Inflows and Whale Selling at Critical $2 Level

XRP 3604058040CR

As December unfolds, XRP finds itself caught between powerful opposing forces. While substantial capital enters the market through newly launched spot ETFs, significant holders are capitalizing on price strength to offload tokens. This dynamic is playing out around the crucial $2.00 support zone, raising questions about the sustainability of the asset's recent performance.

The launch of spot XRP exchange-traded funds has proven to be a resounding success, marking a major shift in institutional accessibility. Since their introduction in November, these products have collectively attracted over $1 billion in net inflows. XRP achieved this milestone faster than any other crypto asset except for the earliest Bitcoin ETFs, signaling robust institutional and advisor-led demand.

The market is currently led by several key providers:
- Canary Capital (XRPC) holds between $363 million and $371 million in assets.
- The Grayscale XRP Trust (GXRP) manages approximately $209 million to $213 million.
- Bitwise's XRP ETF has gathered roughly $187 million to $194 million.
- Franklin Templeton's offering (XRPZ) holds about $129 million to $134 million.

Notably, these funds have not experienced a single day of net outflows since inception. In a further sign of mainstream acceptance, Vanguard—the asset manager overseeing around $11 trillion—has reversed its long-standing policy and now lists XRP spot ETFs on its brokerage platform. Ripple CEO Brad Garlinghouse has highlighted that crypto ETFs still represent only 1-2% of the global ETF industry, suggesting considerable room for future growth.

Significant Holders Apply Selling Pressure

Contrasting the ETF optimism, on-chain data reveals substantial selling activity from large wallets, often called "whales." Beginning December 5th, addresses holding between 100 million and 1 billion XRP have sold tokens worth more than $700 million. The largest addresses accounted for about $600 million of this, with an additional $100 million sold in the following days.

This distribution phase has created headwinds, making it challenging for XRP to establish a firm footing above $2.00. However, data also indicates that many long-term investors remain committed, providing a stabilizing counterbalance in the background.

The $2.00 Threshold: A Technical and Psychological Battleground

Currently trading near $2.02, XRP sits just above its recent annual low. The asset is down approximately 20% over the past 30 days and about one-third below its 52-week high. With its Relative Strength Index (RSI) at 28.8, the market is technically in oversold territory, indicating pressure rather than overheating.

The $2.00 area is viewed as a critical support level, both psychologically and on the charts. This zone, which acted as resistance in previous cycles, has been tested multiple times in recent weeks. Technical analysts suggest that holding above this level is essential for maintaining the structure of a broader upward trend, characterized by a pattern of higher lows that suggests accumulation.

Immediate resistance is seen between $2.22 and $2.28. A decisive break above this range could pave the way toward previous cycle highs, while a sustained drop below $2.00 would significantly weaken the technical outlook.

Ecosystem Development: RLUSD Stablecoin Gains Traction

Beyond XRP itself, the Ripple stablecoin RLUSD is gaining prominence within the XRP Ledger (XRPL) ecosystem. Pegged to the U.S. dollar and backed by cash and short-term liquid assets, RLUSD has reached a market capitalization between $1.2 billion and $1.3 billion, placing it among the larger stablecoins.

Regulatory approvals in key financial hubs have expanded its reach:
- Recognition by the FSRA in Abu Dhabi.
- Authorization from the DFSA in Dubai.
- A Major Payment Institution license from the MAS in Singapore for Ripple.

Institutions like Franklin Templeton are experimenting with tokenized money market funds that can be exchanged directly for RLUSD, enhancing practical utility for payments and investments on the XRPL.

Network Activity and Regulatory Clarity Provide Foundation

On-chain metrics show heightened activity. The transaction velocity of the XRP Ledger has reached approximately 0.0324, its highest level in 2025, pointing to increased token circulation and active network use rather than passive holding.

The settlement with the U.S. Securities and Exchange Commission (SEC) in August 2025 served as a pivotal catalyst, removing a major barrier to institutional adoption in the United States. Subsequently, the XRP futures market at the CME saw its open interest surpass $1 billion in August, becoming the fastest-growing crypto futures contract series to hit that threshold. This provides institutions with enhanced hedging and risk management tools.

Furthermore, XRP continues to see real-world application in cross-border payments. Financial institutions including Santander and SBI route significant transaction volumes through Ripple's On-Demand Liquidity solution. Ripple reports that hundreds of billions of dollars in payment settlements are now processed quarterly over this network.

Outlook: Balancing Conflicting Forces

XRP enters the final weeks of 2025 with a mixed setup. Positive factors include record ETF inflows, the expanding RLUSD ecosystem, and resolved U.S. regulatory uncertainty. These are counterbalanced by persistent selling from large addresses, a cooled price trend, and a challenging macroeconomic environment influenced by recent Federal Reserve policy decisions.

The immediate focus remains the $2.00 support zone. If this level holds alongside continued ETF inflows and steady network usage, a retest of higher resistance levels in early 2026 becomes more likely. Conversely, a clear break below $2.00 could trigger additional selling pressure and disrupt the current recovery narrative.