While XRP faced a challenging start to the trading week, falling to test a key psychological support level, a significant divergence has emerged between short-term price action and the behavior of its largest holders. On-chain metrics reveal that major investors are actively accumulating the digital asset against a backdrop of broader market uncertainty.
Institutional Interest and Regulatory Developments
Fundamental factors are providing a counter-narrative to the recent price weakness. Ripple’s RLUSD stablecoin continues to see growth, indicating rising institutional demand for regulated digital asset products. Furthermore, market participants are monitoring legislative progress in Washington. The anticipated CLARITY Act could see crucial advancements by January 2026, potentially delivering the regulatory clarity the digital asset sector has long sought.
This institutional backdrop coincides with robust network utility. The XRP Ledger recently processed its highest number of payments in six months. This sustained usage is occurring alongside a decline in exchange reserves, a combination that may contribute to a tightening of available supply in the medium term.
Selling Pressure and Market Correction
The asset’s recent decline is part of a broader correction, having closed lower in 13 of the past 14 trading sessions. Analysts attribute this trend to a difficult macroeconomic environment weighing on risk assets. The drop below the $2.00 threshold triggered substantial liquidations, with approximately $40 million in long positions being closed—the largest such event since November 2025.
Should investors sell immediately? Or is it worth buying XRP?
At present, XRP is trading around $2.01 as it attempts to stabilize near its 50-day moving average following a period of increased intraday volatility.
Whale Wallets Seize the Opportunity
Despite the bearish technical signals, blockchain data analysis paints a contrasting picture. Large-scale investors appear to be using the lower price levels for strategic entry. Wallets holding over one million XRP added more than 50 million tokens to their balances over the past week. Long-term holders also participated, accumulating roughly 720 million XRP during the recent dips.
The market landscape remains divided. While bears highlight the weak momentum on the charts and persistent macroeconomic risks, institutional investors and potential ETF inflows are focusing on the network’s underlying fundamentals. Whether this bullish divergence will prevail now depends significantly on the defense of current support zones.
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