While the price of XRP has been consolidating around the $2 level for several days, a significant divergence is unfolding between different classes of investors. Market data reveals that institutional players are actively accumulating the asset, capitalizing on the current price weakness that has unnerved smaller, retail traders.
A Tale of Two Investor Classes
Current market dynamics highlight a clear split in behavior. Sentiment among private investors has deteriorated to levels last observed in October, according to analytics from Santiment. During that prior period, XRP traded at a notably lower valuation. In stark contrast, spot XRP exchange-traded funds (ETFs) have recorded consistent net inflows for more than two consecutive weeks. The total assets under management for these institutional products are now approaching the $1 billion threshold.
This divergence is particularly noteworthy given the price action. XRP has faced selling pressure and struggled to break through the $2.22 resistance zone. Instead of retreating, institutional entities appear to be using this period of consolidation to establish new positions. Analysts note that a sustained drop below the critical $2 support could trigger a move toward $1.80. For a definitive bullish reversal, the asset would need to reclaim the $2.25 region.
On-Chain Metrics Signal Robust Utility
Beneath the surface, the XRP Ledger is displaying substantial activity. A key metric, network velocity—which measures the speed at which XRP circulates between wallets—reached an annual high of 0.0324 this week. This elevated figure suggests the digital asset is being actively utilized for settlement processes and liquidity provision rather than remaining idle in storage.
In related developments, Ripple executed a scheduled release of 250 million XRP from its escrow. While such releases are part of a standard protocol, they have introduced short-term uncertainty for some retail holders. On-chain evidence, however, indicates that large-scale investors are absorbing this additional supply, with major wallets showing patterns of net accumulation.
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RLUSD Stablecoin Surpasses $1 Billion Milestone
A major catalyst for the broader Ripple ecosystem is the rapid growth of its compliant stablecoin, RLUSD. In less than a year since its launch, the project has exceeded a $1 billion market capitalization.
The distribution of RLUSD is strategically layered. Approximately 80% to 85% of its liquidity resides on the Ethereum blockchain, with the remainder on the XRP Ledger. This multi-chain approach allows Ripple to tap into Ethereum’s deep decentralized finance (DeFi) markets while positioning the XRPL as a low-cost settlement layer for institutional stablecoin transfers.
Regulatory Shift Opens Institutional Doors
The conclusion of the SEC lawsuit has fundamentally altered the regulatory perception of XRP. Matt Hougan, Chief Investment Officer at Bitwise, recently noted that institutional investors now classify XRP as a verified financial instrument, effectively removing its previous status as a regulatory uncertainty.
Furthermore, the U.S. Commodity Futures Trading Commission (CFTC) is currently reviewing an application from Bitnomial for a spot XRP contract. Approval would formally designate XRP as a regulated commodity in the United States, paving the way for more developed derivatives markets. Clarity on this front in the coming weeks could provide additional momentum for the asset’s price.
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