Why XRP’s Price Is Tumbling Despite ETF Approval

In a detailed CryptoQuant report, analyst PelinayPA highlighted that the recent crash isn’t due to a lack of interest or fundamental weakness in XRP, but rather coordinated sell-offs by major investors. These whales—entities holding between $100,000 and 1 million XRP, as well as those with over 1 million tokens—have been responsible for the majority of inflows into Binance, one of the world’s largest cryptocurrency exchanges. This pattern suggests that rather than accumulating or holding, these players are looking to liquidate their positions, creating sustained downward pressure on XRP’s valuation.

Whale Movements and Market Impact

Every time these large transfers hit exchanges, XRP’s price forms what technical analysts call a “lower high and lower low” structure. This is a classic indicator of a bearish trend, where each rally is weaker than the last, and each dip goes deeper. PelinayPA’s analysis shows that after major inflow spikes, XRP price tends to recover briefly before falling again, indicating that supply is consistently outstripping demand. The absence of strong new spot buyers—especially from institutional circles—has left the market vulnerable to these sell-offs.

“The continuous increase in available supply, even without aggressive dumping, is enough to keep pushing XRP price lower,” PelinayPA noted in the report.

This isn’t just about a few big players cashing out; it’s about market sentiment shifting in response to their actions. Retail investors, who often follow whale movements, may be getting spooked and selling as well, creating a feedback loop that drives prices down further.

Key Support Levels to Monitor

For traders and long-term holders alike, understanding where XRP might find support is crucial. According to CryptoQuant, the first major support zone lies between $1.82 and $1.87. This range previously saw brief stabilization and attracted some smaller buyers. However, if large outflows continue, XRP could test the next critical levels: $1.50 to $1.66. The chart data does not currently suggest an imminent rally, meaning caution is advised for anyone considering entering or adding to positions.

How Whales Exploited the ETF Narrative

One of the most intriguing aspects of this situation is how whales turned what should have been a positive catalyst—the XRP ETF approval—into a selling opportunity. In theory, ETFs are supposed to bring in institutional money, stabilize prices, and create long-term demand. But in practice, some of the largest XRP holders had already positioned themselves to profit from the hype.

The Pre-ETF Accumulation Strategy

As expectations for an XRP ETF grew throughout early 2023, whales began accumulating the token in anticipation of a price surge. However, instead of holding through the approval and subsequent launch, they transferred these holdings to exchanges just as the ETF narrative reached its peak. This created a surge of sell-side liquidity exactly when retail investors were most optimistic, allowing whales to exit at higher prices while leaving smaller buyers holding the bag.

PelinayPA explained it succinctly: “Whales sold the ETF approval story to retail investors.” This isn’t uncommon in crypto markets, where informed players often use news events to execute well-timed exits. But in XRP’s case, the scale of the selling has been particularly impactful, preventing any sustained upward momentum.

ETF Performance: A Silver Lining?

It’s worth noting that, despite the price action, XRP ETFs have performed reasonably well from an adoption standpoint. Since their launch just over a month ago, these funds have accumulated over $1 billion in net assets, indicating genuine institutional interest. However, this hasn’t been enough to counter the selling pressure from whales, highlighting a disconnect between product success and token price in the short term.

At the time of writing, XRP is trading around $1.90, up almost 4% in the last 24 hours according to CoinMarketCap data. But this minor bounce shouldn’t be mistaken for a reversal; the underlying issues—whale selling and lack of new demand—remain unresolved.

Conclusion: Navigating XRP’s Volatile Waters

XRP’s recent performance is a harsh reminder that cryptocurrency markets are driven as much by psychology and large-player manipulation as by fundamentals. While the approval of XRP ETFs represents a significant milestone for the token’s legitimacy, it hasn’t immunized it against sell-offs from whales who had already positioned themselves to capitalize on the news. For now, investors should keep a close eye on exchange inflow data and key support levels. Until whale activity subsides or new institutional demand emerges to absorb the selling, XRP may continue to face headwinds.

Frequently Asked Questions

Why did XRP crash after the ETF approval?

Large holders, or whales, used the ETF approval as an opportunity to sell their holdings at elevated prices. This created a surge in supply that overwhelmed buying interest, driving the price down.

What are the key support levels for XRP?

According to CryptoQuant, major support lies between $1.82–$1.87. If selling continues, XRP could test the $1.50–$1.66 range.

Are XRP ETFs successful despite the price drop?

Yes, XRP ETFs have gathered over $1 billion in assets, showing institutional interest. However, this hasn’t offset whale selling pressure in the short term.

Should I buy XRP now?

Given the current whale activity and lack of strong new demand, it may be wise to wait for signs of stabilization or reduced exchange inflows before entering a position.

How long might this downtrend last?

It’s difficult to predict, but historical patterns suggest that until whale selling subsides or new institutional buyers step in, the pressure may continue.