XRP Risks Drop: Analyst Signals Key Level

What to Know:

• Analyst Ali Martinez warns XRP may fall to $1 due to heavy whale selling, despite spot XRP ETF inflows.
• The broader crypto market faces downturns from macro headwinds and liquidations, exacerbating XRP’s price decline.
• Aggressive whale selling of XRP contrasts with optimism around institutional demand via spot XRP ETFs.

XRP faces a critical juncture as market analysts flag potential price declines amid significant whale activity. Despite positive developments such as the introduction of spot XRP ETFs and consistent inflows into these investment vehicles, the token’s price remains vulnerable. This analysis delves into the factors influencing XRP’s price action, weighing institutional inflows against the impact of large holder sales.

XRP Whale Offloading

Recent data indicates substantial offloading of XRP holdings by large investors, commonly referred to as whales. According to analyst Ali Martinez, these entities have sold approximately 1.18 billion XRP over the past four weeks. This selling pressure has contributed significantly to the token’s price weakness, overshadowing broader market trends.

Price Impact and Key Levels

The sustained distribution by whales has already impacted XRP’s price structure. Martinez points out that this selling pushed XRP below the crucial $1.92 support level, increasing the risk of a deeper correction. Should bearish momentum persist, a potential move toward the $1 level becomes increasingly likely. Such a decline would represent a substantial correction from current levels.

ETF Inflows vs. Whale Sales

Despite warnings of potential price declines, the XRP community remains optimistic, largely due to the emergence of spot XRP ETFs. These ETFs have attracted cumulative inflows of $1.01 billion, with total net assets around $1.16 billion. Ripple’s CEO has highlighted the consistent inflows into these ETFs, suggesting strong institutional demand. The critical question is whether these inflows can offset the selling pressure from large holders.

Historical Context and Market Sentiment

XRP’s price history offers some context to the current situation. The token last traded around $1 in mid-November, before a broader market rally propelled it to $3.65 in July 2025. However, those gains have since been surrendered amid worsening macroeconomic conditions and liquidations in the futures market. This historical volatility underscores the need for caution, even with positive developments in the ETF market.

Derivatives Positioning and Future Outlook

Analyzing derivatives positioning can offer additional insights into potential price movements. Increased liquidations in the futures market have contributed to XRP’s recent decline, suggesting that leveraged positions are playing a significant role. Whether the inflows into spot XRP ETFs can stabilize the price and counteract the impact of whale selling and derivatives market volatility remains to be seen. The interplay between these factors will likely determine XRP’s trajectory in the coming weeks.

30 straight days of net inflows for XRP Spot ETFS 🙌 https://t.co/k21PvelUAv

— Brad Garlinghouse (@bgarlinghouse) December 16, 2025

In conclusion, XRP faces a complex landscape where institutional inflows via ETFs are pitted against significant selling pressure from large holders. While the ETF inflows are a positive sign, the impact of whale selling and derivatives market dynamics cannot be ignored. Investors should closely monitor these competing forces to gauge the potential direction of XRP’s price in the near term.

Related: XRP: Drop Shifts Market Structure

Source: Original article