XRP Whale Sell-Off Sparks Price Volatility, ETF Hopes Rise

The past week has been defined by substantial divestment from XRP’s largest holders. According to prominent analyst Ali Martinez, whales—entities holding between 1 million and 10 million XRP—sold a staggering 280 million tokens in just seven days. This activity is part of a broader trend of balance reductions from this cohort that began in late September. The price impact has been direct and significant, with XRP sliding from highs above $3 to its current range just above $2. A report from CryptoPotato corroborates this pressure, noting that over 500 million XRP, valued at more than $1 billion, was sold by large holders during the same period.

This aggressive selling has occurred alongside notable shifts in exchange-held supply. Data indicates that the total XRP supply on exchanges has dropped to 2.6 billion tokens, with a net withdrawal of 1.35 billion tokens over the preceding two months. A particularly interesting regional signal comes from South Korea, where withdrawals from the leading exchange Upbit are rising for the first time since 2023. As noted by analyst CW, this suggests “a new wave of Ripple is starting to emerge on Korean exchanges,” potentially indicating accumulation or movement to private wallets away from trading platforms.

Amid the selling pressure, XRP has found a tentative footing. The token is currently hovering around the psychologically and technically significant $2 support level, trading in a tight range between $1.99 and $2.05 over the past 24 hours. Analyst CryptoWZRD highlighted that the asset has yet to experience a decisive breakdown, suggesting that holding above the $2.1 level could be the catalyst needed to trigger the next upward move. This period of low volatility is seen as a potential consolidation phase, with the expectation that volume will increase near either key resistance or support, leading to a breakout from this narrow range.

Looking beyond immediate price action, some analysts are drawing parallels to historical patterns that could signal a major bullish reversal. A chart analysis from ChartNerd compares the current XRP price structure to a similar formation observed in 2017. In both instances, the token completed a technical ABC correction and found a bounce from a Fibonacci-based demand zone. The 2017 precedent was followed by a historic breakout rally. If this structural pattern repeats, the same analysis points to a potential long-term price target near $28, offering a stark contrast to the current bearish sentiment driven by whale activity.

While price action captures headlines, fundamental developments in XRP’s ecosystem are building a case for sustained utility and institutional adoption. A significant milestone is approaching with 21Shares’ proposed spot XRP ETF. The Cboe BZX Exchange has certified the fund’s listing, bringing it closer to regulatory approval. Dubbed TOXR, this product would become the fifth spot XRP ETF available in the United States, a clear signal of growing formal market infrastructure. These funds have collectively seen 19 consecutive days of inflows, indicating steady investor interest despite market volatility.

Simultaneously, the token’s utility is set for a major expansion beyond its native XRP Ledger. Digital asset custodian Hex Trust is launching wrapped XRP (wXRP). This innovation will allow XRP to be tokenized and used seamlessly across various DeFi platforms and blockchains, such as Ethereum, without relying on third-party bridges. By enabling cross-chain functionality, wXRP aims to unlock new use cases in lending, borrowing, and decentralized trading, significantly broadening the token’s reach and potential user base in the rapidly evolving DeFi landscape.