XRP Struggles Amidst ETF Hype and Market Trends
By: Eliza Bennet
Ripple's cryptocurrency, XRP, continues to face challenges despite the introduction and initial success of its exchange-traded funds (ETFs). Analysts and market experts highlight several contributing factors influencing XRP's volatile price actions, including significant selling pressure from whales and the broader dynamics of the cryptocurrency market.
The XRP ETFs launched in the United States were anticipated to bolster XRP's price through increased institutional demand. However, on-chain analysis reveals that this influx has not sufficiently countered the bearish sentiment that has prevailed throughout 2025. Since hitting its all-time high of $3.65 in July 2025, XRP has struggled to maintain upward momentum, currently trading at levels below the $2 threshold due to sustained selling pressure from large holders.
On-chain analytics suggest significant inflows to exchanges from XRP addresses holding between 100,000 and above 1 million XRP, indicating potential ongoing sell-offs. This has resulted in a repeated pattern of lower highs and lower lows for XRP prices. Despite the initial expectations of the ETFs creating a bullish momentum, the reality has been a widespread perception of weakening demand, marked by whales leveraging the price spikes for profit-taking. As institutional interest continues, XRP now faces a critical support zone between $1.82 and $1.87, with risks of further declines if sell-offs persist.
Another dimension to XRP's outlook lies within its structural role in global payments and liquidity frameworks. Ripple's network supports significant cross-border payment systems, illustrating XRP's importance beyond mere trading activities. With more than 300 financial institutions involved and operational corridors covering a substantial share of the global remittance landscape, XRP's potential hinges on sustaining these intricate cross-border and fiat settlement frameworks. Still, XRP's institutional adoption, alongside its success in digital liquidity spaces, must be apparent in both growing On-Demand Liquidity (ODL) volumes and expanding address activity beyond speculative trading, combined with maintaining robust liquidity profiles across markets.
As the year progresses, the performance and perception of XRP ETFs, coupled with the programmatic adoption of Ripple's financial infrastructure, will reveal whether current price trends relate more to speculatory market phases or underlying demand rooted in indispensable utility across financial networks.
