Institutional Investors Defy Market Gloom with Sustained XRP Purchases

The XRP market currently presents a stark dichotomy. On one side, retail sentiment has plummeted to new lows as the price breaches critical technical supports. On the other, institutional money continues to flow in unabated, creating a fascinating tug-of-war between chart-based pessimism and fund-based accumulation.

Macroeconomic headwinds are largely to blame for the asset's recent decline. Uncertainty surrounding the U.S. Federal Reserve's interest rate policy for 2026, coupled with turbulence in the Japanese Yen, has exerted downward pressure. The price has retreated to approximately $1.87, decisively breaking below the $1.95 level—a threshold significant for both technical analysts and market psychology—for the first time in thirteen months.

This price weakness, however, is being met with remarkable institutional conviction. Data reveals that XRP-focused exchange-traded funds (ETFs) recorded net inflows of nearly $44 million this past Monday. This event marks the 26th consecutive day of positive inflows. Since their regulatory approval in November 2025, these investment vehicles have collectively gathered over $1.12 billion. Notably, this appetite for XRP products stands in sharp relief to recent activity in broader crypto funds, where capital has been withdrawn from both Bitcoin and Ethereum offerings. The pattern suggests large-scale investors are strategically using the price dip to establish or increase positions.

Should investors sell immediately? Or is it worth buying XRP?

Ecosystem Activity and Whale Transactions

Beyond the ETF data, significant on-chain movements are occurring. Ripple, the company closely associated with XRP, executed a substantial transfer of 65 million tokens late on December 23rd, valued at roughly $121 million. Market observers frequently interpret such movements as preparations for over-the-counter (OTC) sales to institutional partners or as maneuvers to manage liquidity within the ecosystem.

Concurrently, efforts are underway to expand utility and reduce potential selling pressure. A new yield-generating product named "earnXRP" launched yesterday, allowing holders to earn returns without needing to liquidate their holdings. Furthermore, Ripple continues to bridge digital and traditional finance. Through partnerships with firms like abrdn, tokenized money market funds are now being made accessible on the XRP Ledger.

The Stalemate Between Charts and Fundamentals

The current scenario for XRP has crystallized into a direct conflict between technical indicators and fundamental demand. With its Relative Strength Index (RSI) reading at 28.8, the market is deeply oversold. Yet, analysts agree that a sustained recovery is contingent upon reclaiming the $1.95 price point. The critical question for the coming weeks is whether the relentless purchasing power demonstrated by institutional ETFs can ultimately outweigh and absorb the prevailing negative sentiment among retail investors.