Market Overview
The cryptocurrency market is facing a downturn today, with Bitcoin failing to break through the $94,000 level. Among larger‑cap altcoins, Ripple’s native token, XRP, has experienced the steepest decline. This drop is particularly surprising given the recent strong inflows into U.S. spot XRP ETFs.
Whale Sell‑Offs
One significant reason is the activity of large holders, or “whales,” who have been selling substantial amounts of XRP. Over the past month, these whales have offloaded more than 1.4 billion coins, and this trend continued earlier this week with the sale or redistribution of 140 million tokens.
ETF Demand Decline
Another factor is the decreasing demand for spot XRP ETFs. Although these products have performed well since their launch in mid‑November, inflows have been declining. For example, on December 4, net inflows totaled just $12.84 million, significantly lower than previous records.
Social Media Sentiment
Negative sentiment on social media is also playing a role, with fear, uncertainty, and doubt (FUD) around XRP reaching levels not seen since October. Historically, such negative sentiment has preceded price surges, with XRP’s price increasing by more than 20 % within a few days after similar sentiment lows.
Year‑to‑Date Performance
Despite the recent drop, XRP remains up year‑to‑date. However, it is currently nearly 10 % below its recent highs. The company behind XRP has had a record year in 2025, adding complexity to the current price movement.
Conclusion
In summary, the decline in XRP’s price can be attributed to whale sell‑offs, reduced demand for XRP ETFs, and negative social media sentiment. However, historical trends suggest that this negative sentiment could signal an upcoming price rebound.
