XRP News Update: ETF Investments Face Off Against Large-Scale Whale Sales Amid Market Turbulence

Ripple's

has attracted notable attention from institutional investors even as the broader cryptocurrency market faces a downturn, with ETF inflows and large-scale selling by whales causing a pronounced price gap. The asset was trading at $2.23, marking a 3.04% increase, following a week where it dropped 12% from its recent high, by major holders and a market-wide correction. This contrast emphasizes the ongoing struggle between increasing institutional participation and short-term price swings.

The heightened demand began with the introduction of several ETFs centered on XRP, such as Canary Capital's

, Amplify's offering, and Franklin Templeton's EZRP, in new investments within a matter of days. However, this positive momentum was quickly reversed. Over 200 million XRP tokens were sold by whales within 48 hours after Canary's ETF launch, , similar to the drop seen in Bitcoin following its ETF launch in 2024. Experts point to a "sell-the-news" phenomenon, where large investors cash out after regulatory breakthroughs.

Franklin Templeton's move into the XRP ETF space, with its $1.5 trillion asset management arm launching the EZRP fund, highlighted growing institutional trust in XRP. Bitwise and 21Shares also entered the market, with Bitwise

for the first month of its XRPC ETF. These launches are happening as the crypto sector faces significant outflows, with and ETFs in a single day, while XRP funds stood out by bringing in $118 million.

Fabio Marzella from the XRPL Foundation explained that there is a delay between ETF inflows and price movement, as T+1 settlement cycles postpone the transfer of funds to ETF issuers. Additionally,

takes place off exchanges through OTC desks, which hides the true buying pressure. This means that the impact of ETF demand may take several weeks to appear in on-chain data.

Outlooks for XRP remain optimistic.

worth of XRP each month via OTC, the token’s market cap could rise by $720 billion, potentially driving the price up to $14. XRPL Foundation analysts forecast a $7.2 billion inflow over the next year, from Bitwise, 21Shares, and Grayscale.

Despite these strong fundamentals, XRP is facing technical resistance. It is currently trading near $2.23, testing a crucial support level that previously acted as resistance during the 2021 bull market. A move above $2.74 could set sights on $3.17, while falling below $1.90 may indicate further downside. Meanwhile, institutional players remain cautious,

in XRP accumulated by whales over the past three months—a pattern that often precedes major price changes.

The overall crypto sector continues to face challenges,

in outflows over the past week, marking the third-largest since 2018. Still, XRP has shown resilience, attracting $89.3 million in new investments last week, even as Bitcoin and Ethereum saw withdrawals. XRP’s distinctive role as a core component in global payments, with Ripple’s ongoing infrastructure growth and strategic acquisitions enhancing its attractiveness.

As the ETF market evolves, XRP’s capacity to transform institutional inflows into lasting price appreciation will hinge on bridging the gap between its strong fundamentals and short-term market fluctuations. For now, the market is split between those anticipating a sharp rally and those concerned about further corrections.