XRP is facing a stark divergence between retail enthusiasm and whale behavior, just days after the launch of the first XRP spot ETF in the US.
The token, now the fourth-largest cryptocurrency by market capitalization at approximately $136 billion, has long held a unique place in the digital asset ecosystem. Born in 2012 as a payments-focused alternative to slow and expensive international bank transfers, XRP has maintained one of the most loyal cryptocurrency communities despite spending years under regulatory pressure.
That pressure peaked in December 2020, when the U.S. Securities and Exchange Commission filed a landmark lawsuit accusing Ripple of selling XRP as an unregistered security. After a multi-year legal battle, a federal court ruled in July 2023 that XRP was not a security when traded on exchanges, a decision widely celebrated across the industry and seen as a major blow to the SEC’s aggressive enforcement campaign.
The ruling paved the way for institutions to re-enter the XRP ecosystem, a shift that has now culminated in one of the biggest regulatory milestones in the asset’s history: the launch of the first XRP spot ETF.
But despite the institutional catalyst, new data shows that whales are not buying the rally, they are selling it.
Related: Investment Firm Shuts Down XRP Army, Refuses to Make XRP ETF Monitor Flow
On-chain data shows that large wallets sold off heavily in the post-ETF enthusiasm:
“Whales dumped almost $200 million XRP in just 48 hours!” said popular cryptocurrency trader Ali.
Crypto whales are wallets that hold extremely large amounts of a cryptocurrency, often enough to move markets when they buy or sell. They can be seed investors, exchanges, funds, or high net worth individuals who control tens of millions (sometimes billions) in digital assets. Due to their size, whale activity can cause significant price swings and influence trader sentiment.
The selling pressure coincides with a notable breakout in XRP’s technical structure.
In the last 24 hours, XRP fell 4.3%, moving from $2.31 to $2.22, creating a clear pattern of lower highs and confirming short-term bearish momentum.
Cryptocurrency trader Tara, a widely followed technical analyst, told her followers that XRP is approaching critical buy zones and that volatility could intensify: