The price of XRP is encountering significant selling pressure this Friday, testing crucial technical levels. While a historic wave of institutional interest through new ETFs provides a long-term tailwind, short-term market sentiment remains decidedly skeptical. The current downturn, driven by large investors reducing their holdings, has pushed market mood to a low point, though historical patterns suggest the sell-off may be overdone.
Institutional Adoption Provides a Counter-Narrative
Contrasting sharply with the immediate price action is the continued accumulation by institutional players. Spot ETFs, which began trading in mid-November, are approaching the billion-dollar milestone with inflows of approximately $881 million. In a notable vote of confidence, Franklin Templeton recently elevated XRP to become the fourth-largest holding in its multi-coin ETF.
Furthermore, a key regulatory development has emerged: XRP is now listed on Bitnomial, marking its availability on the first CFTC-regulated U.S. crypto trading platform where it can also be posted as collateral.
Technical Outlook Deteriorates
The recent slide in XRP’s value has gained pace. The asset has broken below the key $2.07 support zone that had held for much of the week. Currently trading at $2.06 and down more than 6% on a weekly basis, the technical picture has weakened. Market analysts view the elevated trading volume accompanying the sell-off as confirmation of seller dominance.
The $2.07 level now acts as immediate resistance. Market observers warn that if buyers fail to reclaim this threshold swiftly, the risk of further declines toward the $1.90 to $1.97 range increases. However, the Relative Strength Index (RSI) reading of 28.8 already signals an oversold condition.
Should investors sell immediately? Or is it worth buying XRP?
Large Holders Drive Selling Pressure
The current weakness is primarily attributed to selling activity from major investors, often referred to as “whales.” Market data indicates these entities have moved or sold around 140 million XRP tokens this week alone. Over the past month, this outflow aggregates to more than 1.4 billion units.
Despite this distribution, on-chain metrics show underlying network vitality:
* The Velocity of the XRP Ledger hit its highest point of 2025 on December 2.
* Exchange reserves are trending downward, which could point to a potential medium-term supply squeeze.
Could Pessimism Signal a Turning Point?
A significant divergence exists between Ripple’s fundamental progress—the company invested nearly $4 billion in infrastructure and acquisitions in 2025—and the declining asset price, heavily weighing on investor sentiment. Data from Santiment reveals market fear has reached its highest level since October.
Paradoxically, this could present an opportunity. The last time sentiment was similarly negative on November 21, it preceded a three-day rally of 22%. For such a reversal to materialize now, a timely recovery above the $2.11 zone is viewed as crucial to neutralize the prevailing sell signal.
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