Fear Surges, But Real XRP Holders Aren’t Shaken—Analyst
Overview
The XRP market is currently experiencing heightened volatility and fear as the token trades under pressure. Recent price movements have seen XRP slipping below the $2 mark, prompting quick exits from many traders. This situation has raised concerns about the resilience of investors amidst the ongoing market turbulence.
Current Market Conditions
According to Versan Aljarrah, founder of Black Swan Capitalist, fear has returned to the XRP market, particularly after a broad market crash in early October linked to tariff tensions between the US and China. This crash led to significant liquidations across various exchanges, with XRP’s price falling to about $1.83 before a small rebound.
The volatility in XRP has been pronounced, with notable price fluctuations. Some exchanges reported vastly different lows, including Kraken at $1.40 and Binance at a flash low of $0.76. Such sharp swings in price have created gaps in liquidity, particularly around the $1.98 to $1.99 range, which traders are closely monitoring.
Despite the recent downturn, XRP has demonstrated a capacity for rapid sentiment shifts. In the last 72 hours, the token recorded a rally of over 18%, indicating how quickly market sentiment can change. However, Aljarrah warns that many investors may not survive the engineered volatility that often accompanies XRP trading.
Historical Context
Analysts attribute part of the current market challenges to XRP’s tumultuous history. The token has experienced significant price swings in the past, including a remarkable surge in 2017 followed by steep declines. This pattern has made holding XRP psychologically challenging for many investors, leading to premature selling before potential major price movements.
Support levels are currently being monitored, with key thresholds identified at $1.95, $1.75, and $1.60. There are also discussions among analysts about potential future rebounds, although these are speculative and contingent upon stable market conditions.
Whale Activity and Institutional Flows
In the midst of the recent price rebound, larger holders, referred to as whales, have been taking profits. Reports indicate that whales holding between 1 million and 10 million XRP sold over 180 million tokens, reducing their total holdings to approximately 4.74 billion XRP. This selling activity can exert additional pressure on the price, even as it attempts to recover.
On a more positive note, institutional interest appears to be growing. The Franklin Templeton and Grayscale XRP ETFs launched recently in the US, attracting a combined positive flow of $130 million on their first day. Additionally, net inflows into US XRP ETFs reached $164 million, which helped absorb some of the selling pressure and contributed to a more than 7% gain in certain trading windows.
Impact on the crypto market
- Increased volatility in the XRP market has led to quick exits by many traders.
- Significant price fluctuations have created liquidity gaps, particularly around certain support levels.
- Historical price patterns of XRP contribute to investor anxiety and premature selling.
- Whale profit-taking may add further pressure to XRP prices even amidst recovery efforts.
- Institutional inflows from newly launched ETFs provide some support against selling pressure.
Updated: 11/26/2025, 1:49:38 AM
