The price of Ripple’s native XRP token has struggled to recover despite record network activity and strong institutional interest, slipping 10.7% in the past week to $2.30, according to CoinGecko.
The drop has come even with Ripple expanding its financial infrastructure reach and traders on Binance rotating into the token, suggesting there’s a growing divide between bullish fundamentals and short-term market behavior.
This contradiction has left many investors puzzled: why does XRP keep falling when the news looks positive? Now, a November 5 analysis by CryptoQuant market technician CryptoOnchain claims to have the answer, attributing XRP’s recent weakness to large holders shifting their funds to exchanges, which he considers a classic “sell the news” setup.
Whale Selling Meets Market Headwinds
In a detailed report, CryptoOnchain broke down what he calls “The XRP Paradox.” Their assessment showed that from late 2024 through 2025, whale-to-exchange flows on the XRP Ledger (XRPL), particularly into Binance, rose sharply, signaling that major holders were preparing to sell long before the recent downturn.
According to the analyst, this consistent rise in whale deposits represents a classic bearish signal. They noted that the 100-day simple moving average (SMA) of these transfers also hit record highs around Ripple’s latest capital injection, confirming that this was a planned distribution phase rather than panic selling, with the large investors using the rally to exit at higher prices.
“The funding announcement created the perfect exit liquidity,” CryptoOnchain wrote. “Whales used retail hype to offload their pre-positioned supply.”
The selling pressure that followed was immense, overwhelming demand, and driving XRP down even as the broader ecosystem showed strong growth.
Adding to the strain was the timing. The distribution coincided with Bitcoin’s steep drop below $100,000 and Ethereum’s slide under $3,200 earlier this week, wiping out over $1.7 billion in leveraged positions in a single day. XRP was not spared either; it broke below $2.40 and fell toward $2.09 before stabilizing.
Strong Fundamentals but Short-Term Pressure
Despite the bearish setup, CryptoOnchain’s research concluded that Ripple’s fundamentals are still strong. Recent acquisitions, including crypto custody firm Palisade and a collaboration with GTreasury, point to deeper integration with traditional finance.
Furthermore, several firms, including Franklin Templeton and Bitwise, have also updated their filings for a spot XRP ETF, with potential launches expected later this month.
“In the short-term, XRP’s price will remain suppressed until the whale selling pressure subsides,” noted the analyst. “However, this event does not negate Ripple’s strong long-term fundamentals supported by its new capital injection.”
Technically, traders have identified $1.94 as a key support zone for XRP. EGRAG CRYPTO noted that the asset remains in an “accumulation range,” suggesting patient investors could benefit if the market stabilizes. But for now, whale activity and a shaky macro backdrop are keeping the lid on prices.
The token has dropped nearly 22% over the past month, underperforming the broader market’s 5% decline. Despite this, it remains up more than 330% year-over-year, with experts pointing to that as proof that its long-term momentum is still intact.
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