TLDR
- 40 million XRP sold by whales, yet the price remains above the critical $3 support level.
- Despite whale selling, XRP price shows resilience, reaching $3.04, its highest since August.
- SEC’s delay in approving XRP ETFs adds uncertainty but doesn’t deter whale selling.
- XRP whales remain negative on the asset, yet institutional support could turn things around.
XRP whales have been active in offloading significant portions of their holdings, with 40 million XRP sold in a 24-hour period, according to Santiment data. This recent sell-off, worth $120 million, highlights a continued negative sentiment from large investors despite the anticipation surrounding the REX-Osprey XRP ETF launch and the upcoming approval of other XRP ETFs.
The XRP price remains surprisingly resilient amidst this selling pressure, staying above the crucial $3 support level. However, analysts are now asking: Can this price stability hold, or is a dip imminent?
Whale Activity and Selling Pressure
The most recent whale movements have seen those holding between 10 million and 100 million XRP moving large quantities of the token to the market. Despite the ETF-related excitement, these whales seem to remain unconvinced about the future of XRP, continuing their liquidation trend.
Santiment data showed that over the last 24 hours, 40 million XRP were sold, and the whale flow remains negative, indicating that large holders are looking to reduce their positions.
This is in sharp contrast to the growing retail interest driven by the ETFs and DeFi development surrounding the asset.
XRP Price Holds Strong at $3 Support
Despite the whale selling, XRP’s price has shown strength, holding at $3.04—its highest level since late August. After dropping below $2.85 in recent weeks, XRP managed to recover and maintain its upward momentum, surprising many market participants.
This development signals that demand for the token remains strong enough to counteract the significant selling pressure from whales.
At the time of writing, XRP is trading up by 0.83% for the day and showing an overall 7.63% increase over the last week. This surprising resilience at $3 highlights a growing bullish sentiment, despite the heavy sell-off from large holders.
Role of ETFs and Regulatory Uncertainty
The uncertainty surrounding the approval of spot XRP ETFs by the U.S. SEC continues to add pressure to the market. The SEC’s recent delay in making a decision on the Franklin Templeton XRP ETF has created additional regulatory uncertainty for the asset.
However, despite these delays, the REX-Osprey XRP ETF launch has been closely watched as a potential game-changer for institutional investors.
In fact, XRP’s price may be reflecting the lack of immediate institutional interest in ETFs, as whale selling continues and the overall market sentiment remains mixed. There is also talk that institutional demand may not materialize as expected, similar to the underwhelming performance of REX-Osprey’s Solana ETF (SSK), which saw only $205 million in inflows since launch.
Short Positions and Future Price Outlook
The increased selling from whales is also accompanied by short positions opened between $3.3 and $3.6 on various platforms like Binance, Coinbase, and OKX. This suggests that traders are betting on a price decline in the near term, creating a challenging environment for bulls looking to push the price higher.
Despite this, the XRP price managed to stay above $3, indicating that the market is still relatively stable. Traders and analysts are closely watching the $3.25 and $3.37 levels, as these may be the next targets if XRP continues to hold strong. However, much depends on broader market conditions and the SEC’s final decision on the ETF approval.
