Why Is Ripple’s (XRP) Price Down Today?
Although most of the cryptocurrency market has turned red today after BTC’s failed breakout attempt at $94,000, Ripple’s native token has dropped the most, which is somewhat surprising given the impressive inflows into the spot XRP ETFs in the US.
However, other developments around the overall XRP ecosystem might have increased the immediate selling pressure. One of them is the behavior of whales, which have continued to dispose of large quantities of the token.
Although they offloaded more than 1.4 billion coins in the span of roughly a month, as reported in early November, they have not changed their tune and continue to do so. The latest selling spree came earlier this week, in which 140,000,000 tokens were “sold or redistributed,” according to Ali Martinez.
Another plausible reason could be the reduced demand for the spot XRP ETFs. As reported earlier this week, the financial vehicles linked to Ripple’s token outperformed the counterparties for BTC, ETH, and SOL since their inception in mid-November but the amount of inflows has been gradually declining.
They are still in the green as their impressive streak continues, but the total net inflows for December 4 was just $12.84 million, which is nowhere near the records of $243 million (November 14), $164 million (November 24), and $118 million (November 20).
The latest rejection at $2.20 and the subsequent retracement to the current levels of $2.07 have turned the crowd’s sentiment as well. Santiment noted earlier that the social media FUD surrounding XRP has reached its most intense level since October.
However, this could actually be a bullish sign for the asset as the last time this happened its price skyrocketed by more than 20% in the span of just a few days.
For now, though, XRP remains almost 10% down YTD, even though the company behind it has turned 2025 into its best year on record.
The post Why Is Ripple’s (XRP) Price Down Today? appeared first on CryptoPotato.
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