XRP has fallen below $2 for the second time since November amid heavy whale selling.
The token dropped around 6% in 24 hours to approximately $1.86, extending a decline that has tracked broader weakness in cryptocurrency markets.
The price decline comes despite spot XRP exchange-traded funds recording over $1 billion in inflows.
The funds have posted 21 consecutive days of positive net inflows since launching in mid-November.
Whales holding between 1 million and 100 million tokens sold approximately $783 million worth of XRP over the past week.
What Happened
Large XRP holders have been actively selling despite institutional demand through ETF products.
Wallets holding between 1 million and 10 million XRP offloaded more than 390 million tokens worth over $783 million at current prices.
The selling has persisted even as U.S.-listed spot XRP ETFs attracted $1.01 billion in cumulative net inflows.
Canary Capital's XRPC ETF led with $376.5 million in net inflows.
Grayscale's GXRP ETF contributed $219.76 million, while Bitwise's XRP ETF saw $212.58 million in inflows.
The XRP ETF products reached the $1 billion milestone faster than Ethereum ETFs, which took 96 days to hit the same mark.
Only Bitcoin ETFs reached $1 billion in net inflows faster, achieving the milestone in just four days.
XRP now trades around $1.86, testing a crucial support zone that analysts warn could break lower.
The next significant support sits at $1.78, where approximately 1.85 billion XRP were previously acquired.
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Why It Matters
The disconnect between ETF demand and price action reveals a market dominated by early holders taking profits.
Long-term holders have been selling into institutional buying, preventing price appreciation despite strong inflows.
On-chain data from Glassnode shows realized profit has surged roughly 240% since September.
Daily realized profit has climbed from approximately $65 million to nearly $220 million.
This selling pressure has overshadowed significant regulatory and business milestones for Ripple.
Ripple recently secured conditional approval from the Office of the Comptroller of the Currency for banking operations.
Swiss-regulated AMINA Bank launched Ripple's licensed payments product for cross-border transfers.
Ripple's $1.3 billion RLUSD stablecoin expanded to Ethereum Layer-2 networks including Optimism, Base, and Kraken's Ink.
The token's decline has also coincided with reduced leverage in derivatives markets.
Binance's Estimated Leverage Ratio for XRP has fallen to around 0.18, one of the lowest readings in months.
Lower leverage reduces the probability of cascade liquidations but also indicates less speculative fuel for price gains.
If XRP breaks below $1.78, analysts project a potential drop toward $1.61 or even $1.40, the 200-week exponential moving average.
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