XRP remains under pressure as its month-long downtrend continues to pull the altcoin closer to the key $2 level. Earlier in the month, XRP attempted to break out of this declining pattern but failed to sustain momentum.
Adding to this pressure are the investors, who are leaning towards selling at the moment. Thus, the question now is whether the growing anticipation surrounding potential XRP ETF approvals can help prevent a deeper drop.
XRP Investors Are Selling
XRP exchange net position data is showing its first confirmed inflow in more than a month, owing to the ongoing price drop. After several weeks of declining outflows, the past 24 hours marked a clear return of capital to exchanges, signaling selling. This shift is notable because inflows typically reflect weaker investor conviction and renewed interest in selling during periods of uncertainty or bearishness.
This 30-day trend reversal highlights worsening sentiment among XRP holders. Instead of buying into weakness, investors appear to be positioning for potential downside by selling their holdings. The change from steady outflows to early inflows indicates a bearish lean, weakening short-term support.
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XRP Exchange Net Position Change. Source: Glassnode
Whale activity, on the other hand, is attempting to counter the overall selling effect, indicating confidence in XRP’s recovery potential. Addresses holding between 10 million and 100 million XRP have accumulated an additional 1.1 billion XRP in the past week. This brings their total holdings to 9.74 billion XRP, marking an increase of $2.36 billion at current valuations.
Such aggressive accumulation from large holders signals sustained optimism about long-term price performance. Whales are often considered the most influential cohort in crypto markets, and their buying activity tends to drive broader sentiment.
XRP Whale Holding. Source: Santiment
XRP Price May Be Safe From Correction
XRP trades at $2.14 and currently rests on key support at the same level. The asset has been locked in a downtrend for nearly a month, struggling to break out despite periodic attempts. Without external catalysts, XRP risks drifting lower as bearish momentum persists.
However, XRP may avoid a deeper decline as the likelihood of ETF approval increases. Bloomberg ETF analyst Eric Balchunas noted that the SEC released guidance allowing issuers to speed up filing effectiveness, likely to clear regulatory backlog. Bitwise’s XRP ETF is reportedly next in line, and any progress could improve market sentiment instantly.
XRP Price Analysis. Source: TradingView
If bullish momentum continues and ETF expectations strengthen, XRP could climb to $2.28 and then $2.36, breaking free from its downtrend. But if the investors’ selling increases or ETF decisions face delays, XRP may resume its slide and potentially drop 6.8% to reach $2.00. This would invalidate the bullish thesis.
