XRP Faces Contradictory Market Forces as Whales Sell Into Institutional Demand

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The XRP market is presenting a complex and contradictory picture this week, puzzling investors with its divergent signals. Despite significant institutional milestones that typically provide bullish momentum, the digital asset's price has been driven to a fresh annual low by a substantial wave of selling pressure. This sell-off, led by major holders, is creating market uncertainty as key support levels are tested.

Fundamentally, XRP is witnessing one of its strongest periods of institutional adoption. A key development occurred this Tuesday with the launch of XRP futures trading by the CME Group. This move is widely viewed as a critical step for the asset's integration into the professional financial sector, offering institutional players regulated hedging tools.

Simultaneously, U.S. spot ETFs continue to demonstrate robust and sustained demand. These products have now recorded net inflows for 30 consecutive days since their November debut, with cumulative inflows surpassing $1.18 billion. This creates a stark dichotomy: while established large holders are taking profits, new institutional capital appears to be using the lower price levels for accumulation.

Major Holders Trigger Sell-Off

The primary source of current downward pressure originates from so-called "whales"—investors holding enormous quantities of XRP. On-chain data reveals a clear divergence in behavior: retail investors and ETFs are buying, but these large-scale investors are withdrawing capital at a significant rate. Approximately 1.18 billion XRP have been moved from the wallets of major holders in just the past four weeks.

One particular actor has drawn considerable attention. Reports indicate that a previously dormant wallet, inactive for seven years, was reactivated to dispose of XRP valued at nearly $721 million. This massive distribution played a major role in boosting trading volume and triggered a chain reaction, leading to the liquidation of leveraged long positions worth millions.

Technical Outlook Weakens

The selling activity from large investors has left a clear mark on XRP's price chart. The asset broke below the psychologically significant $2.00 level and established a new 52-week low at $1.93. Technical analysts are now closely monitoring the support zone. Experts suggest that a sustained breach of this region could pave the way for a deeper correction, although some market observers interpret the current level as a potential completion point for a corrective phase, often referred to as a "Wave 4" pattern.

Operational Progress Continues Apace

Away from the price volatility, Ripple continues to advance its operational roadmap. The RLUSD stablecoin is currently in its testing phase on major networks. In a significant development, AMINA Bank has become the first European financial institution to utilize Ripple Payments for transaction settlement. Regulatory progress has also been made, with the conditional approval of a bank charter in the United States, bolstering the project's long-term outlook.

The current market dynamic resembles a tug-of-war between long-term institutional accumulation and substantial liquidity drainage by early, large-scale investors. Whether support at $1.93 holds is likely to dictate the short-term direction. For stabilization to occur, it is crucial that selling pressure from whales subsides before further technical damage is sustained.