Institutional Investors Defy Market Sentiment with Heavy XRP Accumulation

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The XRP market is currently defined by a striking divergence. As the asset's price declined to $1.85 on Thursday, continuing a trend of selling by large holders, institutional demand has simultaneously surged to unprecedented heights. Since their launch in November, U.S.-based spot ETFs for XRP have attracted cumulative inflows exceeding one billion dollars, without recording a single day of net outflows. In a separate but related move, a consortium has moved to secure $300 million worth of equity in Ripple Labs.

Market analysts point to a crucial technical threshold at the $1.80 support level. A sustained break below this point would confirm a bearish outlook, whereas a recovery above the key $2.00 resistance is necessary to invalidate several negative chart patterns. The immediate future appears to hinge on this battle.

Veteran trader Peter Brandt highlighted a concerning "Double Top" formation on the weekly chart on December 18. His analysis suggests that failure to reclaim the $2.00 level could precipitate a decline toward $1.00. Current momentum remains downward, with the Relative Strength Index (RSI) hovering around 33, nearing oversold territory but not yet signaling a reversal. This pressure is compounded by significant selling from crypto whales, who have offloaded approximately 1.18 billion XRP over the past four weeks, stifling any sustained price recovery.

Unwavering Institutional Confidence

The institutional appetite for XRP presents a stark contrast to broader market trends. While Bitcoin ETFs have faced outflows of $2.9 billion and Ethereum funds have seen withdrawals of around one billion dollars in recent weeks, XRP-focused investment vehicles have consistently drawn capital. Their unbroken 30-day streak of net positive inflows underscores a deep-seated conviction among professional investors.

This sentiment is further evidenced by a major corporate investment announced on December 18. VivoPower International and Lean Ventures have established a joint venture to acquire $300 million in Ripple Labs shares. This structure is designed to provide South Korean investors with indirect exposure to roughly one billion dollars worth of XRP. VivoPower projects net fee revenues of $75 million from this venture over a three-year period.

Ecosystem Expansion Beyond Trading

Parallel to these market movements, Ripple is actively broadening its underlying infrastructure. SBI Ripple Asia, a joint venture with SBI Holdings, has partnered with Doppler Finance to develop institutional yield-generation structures for XRP. A key feature of this initiative is that banks and funds can earn returns without relying on on-chain staking mechanisms.

Furthermore, Ripple is extending the reach of its RLUSD stablecoin to major Layer-2 networks, including Optimism, Base, Ink, and Unichain. This strategic expansion embeds the company's infrastructure more deeply within the Ethereum-compatible decentralized finance (DeFi) ecosystem.

Volatile Road Ahead

Looking forward, analysts anticipate high volatility for XRP through 2026, with price projections ranging widely from $1.40 to over $4.00. The ultimate trajectory will depend on which force prevails in the current tug-of-war: the persistent selling pressure from large holders or the relentless accumulation by institutional entities. The outcome at the $1.80 support level may provide the next decisive signal.