Whale Inflows Dampen XRP ETF Optimism As Selling | Crypto News
Expectations around XRP exchange-traded funds have been seen as a turning level that may unlock new institutional demand and change XRP’s price construction in favor of consumers. However, current on-chain data suggests the price response has diverged immensely from that narrative.
Metrics tracked by the on-chain analytics platform CryptoQuant level to a very different dynamic unfolding beneath the floor, one that explains why the altcoin continues to wrestle for traction despite headline optimism and inflows into Spot XRP ETFs.
Whale Exchange Inflows Expose Supply Pressure
Data from on-chain analytics platform CryptoQuant reveals an attention-grabbing development among XRP whale addresses and their exercise on crypto exchange Binance. A more in-depth look at the Binance Inflow-Value Band chart reveals that current XRP deposits to exchanges are overwhelmingly concentrated in the 100,000 to 1 million XRP vary and transactions exceeding 1 million cash.
These will not be retail-sized actions. They mirror exercise from large holders transferring important balances onto exchanges, and this habits aligns with distribution or preparation for promoting. The chart exhibiting the exchange influx into Binance makes this sample clear, with repeated influx spikes pushed nearly solely by these higher-value bands, while smaller transaction sizes are comparatively decrease.
The chart image below reveals inflows in chunks between 100,000 XRP and 1 million XRP in purple and inflows of chunks more than 1 million XRP in gentle blue. Most of the inflows into Binance in the past few days have been characterised by these two cohorts, with a few situations of inflows in chunks between 10,000 XRP and 100,000 XRP.
XRP Ledger: Exchange Inflow Value Bands – Binance. Source: CryptoQuant
This imbalance means that provide is being added to the market by whales at a tempo that smaller consumers can’t take up, and this is why inflows into Spot XRP ETFs have failed to have a optimistic impact on the altcoin’s price motion.
Lower Highs, Lower Lows Confirm Supply Overpowering Demand
As shown in the price motion overlaid in the chart above, the coin printed repeatedly decrease highs and decrease lows after major exchange deposits. This occurs because of the comparatively low numbers of new spot consumers on Binance, and even reasonable promoting stress has been enough to cap rallies.
As it stands, the crypto is going through promoting stress every time it approaches $1.95. Based on the depth of exchange inflows and the market’s response, the first significant assist zone is between $1.82 and $1.87. However, if large inflows persist, the data suggests the XRP price may continue declining to the $1.50 to $1.66 vary.
The interpretation is that the ETF development didn’t translate into sustained spot demand for XRP. Instead, whales who accrued XRP forward of ETF approval expectations seem to have used the ensuing consideration as an alternative to dump their holdings.
That said, inflows into Spot XRP ETFs might have helped restrict deeper draw back, as data from SoSoValue reveals these funds recorded $82.04 million in inflows over the current week.
Featured image from Unsplash, chart from TradingView
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