Why XRP Is Falling Today: Whale Sales, ETF Inflows Slowing, and Social FUD
XRP has led large-cap altcoin losses after Bitcoin failed to hold a breakout near $94,000. Key drivers cited: continued whale selling (over 1.4 billion XRP sold in about a month, with another 140 million tokens moved this week), and declining net inflows into US spot XRP ETFs (December 4 inflows only $12.84M versus peak days of $243M, $164M and $118M in November). Price rejected at $2.20 and retraced to about $2.07, while social-media FUD reached its most intense level since October. Despite short-term weakness and almost 10% YTD decline, ETF inflows remain positive and prior spikes in social negativity preceded >20% rallies, leaving mixed signals for traders.
Neutral
The short-term price action is bearish: large whale disposals, a failed rejection at $2.20, declining daily ETF inflows and heightened social FUD increase selling pressure and market volatility. Those factors can trigger continued weakness and larger drawdowns in the near term as holders reduce exposure. However, medium-to-long-term fundamentals remain supportive: spot XRP ETFs continue net inflows (cumulative near $900M), and past episodes of elevated social negativity preceded sharp rallies, indicating potential for a rebound if inflows resume or whales pause selling. For traders: expect heightened volatility and range-bound trading near support levels; short-term tactical bias favors risk management and potential short exposure on breakdowns. Longer-term holders may view dips as accumulation opportunities if ETF demand stabilizes. Comparable past events include ETF-led flows for BTC/ETH where declining daily inflows led to pullbacks before resumed momentum once flows recovered.