XRP price prediction remains uncertain as whale selling increases and network activity drops sharply. However, strong ETF inflows continue to provide support for Ripple’s native token.
Ripple’s native cryptocurrency XRP is facing renewed selling pressure after a sharp decline over the past few weeks. The token has dropped more than 4% in the last 24 hours and is down nearly 18% over the past month, raising concerns among investors about its short-term outlook.
While institutional demand through XRP exchange-traded funds (ETFs) remains strong, recent on-chain data highlights two major warning signs that could impact the XRP price prediction in the coming weeks.
XRP Struggles to Hold Key Support Levels
After failing to break above the $1.30 resistance zone earlier this week, XRP has slipped back toward the $1.10 level. The broader cryptocurrency market has also experienced weakness following recent macroeconomic developments and increased investor caution.
As XRP attempts to stabilize, analysts are closely monitoring whale activity and network participation for clues about the token’s next move.
Warning Sign #1: XRP Whales Are Selling
One of the biggest concerns for investors is the recent behavior of large XRP holders, commonly known as whales.
According to blockchain analytics data, whales have reportedly sold more than 30 million XRP tokens over the last five days. This selling activity has reduced their collective holdings to approximately 3.78 billion XRP.
Large-scale selling by whales often increases market pressure because these investors hold significant portions of the circulating supply. When whales begin reducing their positions, smaller investors sometimes follow suit, creating additional downward momentum.
The trend is particularly important because whales are believed to control a substantial share of the XRP ecosystem, making their actions a key indicator for future market sentiment.
Warning Sign #2: Network Activity Drops Nearly 50%
The second major concern comes from XRP’s declining network usage.
Recent blockchain data suggests that active addresses on the XRP Ledger have fallen dramatically over the past two weeks. Daily active wallets reportedly dropped from around 50,000 to nearly 25,000, representing a decline of almost 50%.
Network activity is often viewed as a measure of user engagement and overall ecosystem health. When fewer users interact with a blockchain network, it may signal weakening demand or reduced transaction activity.
A sustained decline in active addresses could create additional challenges for XRP’s recovery efforts.
Institutional Investors Continue Buying XRP ETFs
Despite the bearish signals from whale behavior and network activity, one positive trend continues to stand out.
Institutional investors remain interested in XRP-related investment products, particularly spot XRP ETFs.
Recent data shows that XRP ETFs recorded consistent inflows during the past week:
- Monday: $2.82 million inflows
- Tuesday: $5.30 million inflows
- Thursday: $2.55 million inflows
These steady inflows pushed total cumulative net investments in XRP ETFs to a new record high of approximately $1.45 billion.
This ongoing institutional demand suggests that larger investors continue to see long-term potential in XRP despite current market volatility.
What This Means for XRP Price Prediction
The current market picture presents mixed signals for XRP investors.
On one hand, whale selling and declining network activity suggest weakening short-term momentum. These indicators could place additional pressure on XRP prices if the trend continues.
On the other hand, strong ETF inflows demonstrate that institutional investors are still accumulating exposure to XRP, which could help provide support during market downturns.
For now, XRP remains at a critical stage. If the token successfully holds key support levels and network activity begins recovering, bullish sentiment could return. However, continued whale selling and reduced blockchain participation may lead to further downside risks.
