On-chain analytics platform CryptoQuant has revealed why the XRP price keeps crashing, recently dropping below the psychological $2 level. The platform noted that the XRP ETF approval has failed to stop the selling pressure but instead looks to have escalated it.
👉Why The XRP Price Is Crashing Despite ETF Success:
In a CryptoQuant report, analyst PelinayPA revealed that the XRP price is facing significant selling pressure from whales holding between $100,000 and 1m XRP and those holding above 1m. These XRP whales are (said to account for the majority of inflows into the crypto exchange Binance. )
👉A long-dormant XRP whale has moved tokens held for more than five years, realizing an estimated $721.5 million in profit, according to Glassnode data. The transfer involved coins last active between five and seven years ago, far beyond the long-term holder threshold, and caused a sharp spike in XRP’s Realized Profit metric as the assets were moved around December 11 when XRP traded near $2.00—well above their estimated $0.40 cost basis.
Since the transaction, XRP has seen a modest pullback in line with the broader market, dipping to around $1.86 before recovering near $1.94, a move that followed a period of strong bullish sentiment on social media, a pattern that has historically coincided with short-term weakness in digital asset prices.👈
These transfers indicate that these whales are typically looking to offload these coins, which is putting selling pressure on the XRP price. PelinayPA noted that after each major inflow spike on the chart, the XRP price forms a lower high and lower low structure, suggesting that supply is overwhelming demand at the moment.
The CryptoQuant report noted that this happens because there is no strong new spot buyer in the market. The continuous increase in available supply is also said to keep pushing the XRP lower, even though the whales are not aggressively dumping. Meanwhile, PelinayPA highlighted key price levels to watch out for as the price continues to crash.
The analyst stated that, based on the inflow intensity and price reactions, the first major support zone stands between $1.82 and $1.87. She noted that this range marked where the price briefly stabilized and where small buyers appeared. However, XRP still risks crashing to the $1.50 and $1.66 range if the large outflows continue. The chart does not indicate that the altcoin could rally anytime soon with this selling pressure.
👉Whales Took Advantage Of The ETF Narrative:
The CryptoQuant report stated that, in theory, the XRP ETF process was expected to create institutional demand and push the price higher through spot buying. However, that hasn’t been the case, as there have instead been high-volume XRP inflows to Binance. PelinayPA explained that whales were the first to act as ETF approval expectations increased. 👇
👉Bitcoin on-chain data shows a divergence in exchange flows, with BTC increasingly moving into Binance while other centralized exchanges continue to see accelerated withdrawals. CryptoQuant reports that Bitcoin reserves on Binance are rising despite overall exchange balances declining, suggesting a consolidation of liquidity on the world’s largest exchange that could lead to heightened volatility. Analysts note that while many investors are moving BTC into self-custody, inflows to Binance may reflect increased trading, hedging, or positioning by larger market participants, a pattern that has previously preceded major price moves. At the same time, long-term holders appear to be reducing sell pressure, signaling that the current dynamics may support a bullish long-term outlook despite short-term market uncertainty.👈
The analyst further revealed that XRP accumulated in advance for the ETF narrative was transferred to exchanges and used as sell-side liquidity. Basically, whales sold the ETF approval story to retail investors. As a result, the XRP price faces significant selling pressure every time it approaches the $1.95 level.
PelinayPA reiterated that expecting a bullish move before exchange inflows decline would be an unrealistic assumption. However, it is worth noting that the XRP ETFs have been successful so far, accumulating over $1 billion in net assets in just over a month since their launch. 
