XRP Faces Selling Pressure Despite ETF Inflows and Legal Clarity

The cryptocurrency XRP entered 2025 under seemingly ideal conditions, having resolved its lengthy legal dispute with the U.S. Securities and Exchange Commission and gained approval for spot exchange-traded funds. These were historic milestones. However, as the year draws to a close, the prevailing mood is one of disappointment rather than celebration. The asset's price has fallen well below the psychologically significant $2.00 level, with intense selling pressure, not institutional buying, currently dictating market dynamics.

The primary driver behind this weakness appears to be major investors. On-chain analytics from CryptoQuant reveal that so-called "whale" addresses—those holding between 100,000 and over one million XRP—have transferred significant volumes to exchanges like Binance. This pattern typically signals an intent to sell and has repeatedly capped any attempted price recoveries.

This scenario exemplifies the classic market adage "buy the rumor, sell the news" in its starkest form. Despite the newly launched XRP spot ETFs attracting over $1 billion in inflows within their first four weeks of trading in November, early investors used this fresh liquidity to secure profits. Reports indicate that a single wallet, which had accumulated positions around $0.40, realized gains exceeding $700 million when the price touched the $2.00 mark.

Could Extreme Pessimism Signal a Turning Point?

From a technical perspective, the asset is under considerable strain. XRP is now in oversold territory, with its Relative Strength Index (RSI) reading at 28.8. The support zone between $1.80 and $1.85 has been tested multiple times in recent weeks and is viewed as a critical last line of defense against a steeper decline.

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

Interestingly, some analysts interpret the overwhelmingly negative sentiment as a potential contrarian buy signal. Data from the analytics firm Santiment shows social media commentary is currently more negative than average. Historically, the probability of a price reversal often increases when the majority of retail investors lose confidence and capitulate.

Infrastructure Development Continues Amid Price Weakness

Beneath the surface price action, ecosystem development persists. Just this Tuesday, partners including Flare and Upshift introduced the "earnXRP" Vault. This DeFi product allows investors to generate yield on their holdings without needing to sell the tokens—a development that could, over the long term, reduce the circulating supply.

For the remaining trading days of the year, market participants are focused on the defense of the $1.85 level. A decisive break below this support would further deteriorate the chart structure and could trigger a retreat toward the $1.60 area. Conversely, if this foundational support holds, a stabilization and move back toward $2.10 remains possible, allowing the asset to at least close the year without further losses.