Crypto analytics firm CryptoQuant has explained the recent decline in XRP’s price, which fell below the key $2 mark. According to the platform, the approval of XRP ETFs has not alleviated selling pressure but appears to have intensified it.
Analyst PelinayPA noted in a CryptoQuant report that significant selling is coming from large holders, or “whales,” who own between 100,000 and 1 million XRP, as well as those holding over 1 million tokens. These whales are responsible for most of the XRP flowing into the Binance exchange, suggesting they are looking to sell, which weighs on the price.
The report indicates that after each major spike in these inflows, XRP forms a pattern of lower highs and lower lows, showing that supply is currently outstripping demand. This trend persists due to a lack of strong new buyers in the spot market. Even without aggressive selling by whales, the steady increase in available supply continues to push the price down.
PelinayPA also pointed out key support levels to monitor. The first major zone lies between $1.82 and $1.87, where the price previously stabilized and attracted some smaller buyers. However, if large outflows continue, XRP could fall further to the $1.50–$1.66 range. The current selling pressure suggests a sustained rally is unlikely in the near term.
The report added that while the XRP ETF launch was expected to boost institutional demand and drive prices higher through spot buying, the opposite has occurred, with high volumes of XRP moving to Binance instead. Whales were quick to capitalize on the ETF hype, transferring XRP they had accumulated in advance to exchanges to sell, effectively using retail investor optimism as an opportunity to offload tokens. This has led to strong selling pressure whenever XRP nears the $1.95 level.
PelinayPA emphasized that a price recovery is unlikely until exchange inflows decrease. It’s worth noting, however, that the XRP ETFs have seen notable success, gathering over $1 billion in net assets within just over a month of their launch.
At the time of writing, XRP is trading around $1.90, up nearly 4% in the past 24 hours, according to CoinMarketCap data.
Frequently Asked Questions
Frequently Asked Questions Why is the Price of XRP Falling
BeginnerLevel Questions
Q1 What is XRP and why should I care about its price
A1 XRP is a digital cryptocurrency created by Ripple Labs Its price matters because it reflects market sentiment adoption and the overall health of the Ripple ecosystem which aims to facilitate fast lowcost international payments
Q2 Is XRP the same as Ripple
A2 No Ripple is the company that develops payment technology XRP is the independent digital asset used within some of Ripples solutions and on the open market
Q3 Why is the price of XRP going down right now
A3 Prices can fall for many reasons including broader market downturns negative news selling pressure from large holders or uncertainty around regulations and Ripples ongoing legal case with the SEC
Q4 Is this just normal market volatility
A4 Partly yes All cryptocurrencies are highly volatile However XRPs price has faced unique prolonged pressure due to its specific legal challenges which amplifies normal market swings
Q5 Should I buy XRP while its on sale
A5 This is a personal investment decision Never invest money you cant afford to lose A falling price could be an opportunity but it could also fall further Always do your own research
Intermediate Advanced Questions
Q6 How does the SEC lawsuit specifically affect XRPs price
A6 The lawsuit created massive uncertainty From 20202023 many US exchanges delisted XRP reducing access and liquidity While Ripple has won key legal battles the case isnt fully resolved causing lingering caution among institutional investors
Q7 What is selling pressure and where is it coming from
A7 Selling pressure means more people are trying to sell than buy For XRP it often comes from large periodic releases of XRP from Ripples escrow accounts sales by large holders or investors exiting positions during fear or negative news cycles
Q8 Does Ripples escrow system hurt the price
A8 It can Ripple releases 1 billion XRP from escrow each month to