Investors in XRP are facing a contradictory landscape as the year draws to a close. The digital asset’s price has fallen below the psychologically significant $2.00 threshold, yet the underlying blockchain has simultaneously reported unprecedented usage levels. This divergence between weak price action and strong fundamental growth prompts a key market question: is this a simple correction being used for portfolio repositioning, or are profit-taking activities driving the trend?
Fundamental Strength: Four Billion Transactions Confirmed
Away from the price charts, the XRP Ledger (XRPL) is demonstrating remarkable activity. Ripple’s Chief Technology Officer, David Schwartz, recently announced a significant achievement: the network has now processed over four billion confirmed transactions. Schwartz emphasized that this volume represents real-world utility, facilitated by the network’s fast and low-cost settlement capabilities. High on-chain activity is frequently viewed as a long-term indicator of a maturing protocol, even when its immediate impact on valuation is not apparent.
Institutional Adoption Provides a Counterweight
The growing interest from institutional investors serves as a stabilizing counter-narrative. Following the regulatory clarity achieved after the conclusion of the SEC lawsuit, newly launched spot XRP ETFs have attracted substantial capital inflows. Reports indicate that some of these financial products have already surpassed one billion dollars in trading volume. Industry figures, including Canary Capital CEO Stephen McClurg, interpret this as a paradigm shift, with XRP increasingly establishing itself as infrastructure for the broader financial system.
Capital Rotation and Technical Pressure Weigh on Valuation
Currently trading near $1.90, XRP confirms its recent downward trajectory. Market observers primarily attribute this movement to a rotation of capital, where liquidity is flowing toward Bitcoin and other altcoins with stronger short-term momentum, leaving older assets temporarily behind.
Should investors sell immediately? Or is it worth buying XRP?
Analysts note that breaking the $2.00 support level triggered automated sell orders, intensifying downward pressure. Technically-focused traders are now watching for the next potential support zone around $1.63.
Whale Movements Signal Short-Term Caution
Contrasting with institutional adoption, short-term on-chain data reveals caution among large holders. Increased inflows from so-called “whale” wallets to trading exchanges have been observed. This pattern often signals profit-taking or hedging strategies and helps explain the persistent selling resistance encountered during recent price recovery attempts.
As 2025 concludes, near-term expectations for XRP remain tempered. A survey conducted by the cryptocurrency exchange Gemini found that nearly three-quarters of participants anticipate the price will be between $1.50 and $2.00 at the turn of the year. While the long-term foundation appears strengthened by ETF growth and record network usage, current sentiment suggests the market is undergoing a phase of recalibration.
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