Why Ripple (XRP) Downtrend May Deepen Amid Rising Currency Inflows

Despite the price decline of XRP, spot XRP ETFs have attracted notable institutional inflows.

Ripple (XRP) has struggled to regain the $1.90 level, and recent price action has repeatedly shown rejections near that zone despite brief recovery attempts. After a sharp decline earlier in the week, buyers briefly managed to push prices higher on December 29, but selling pressure ended just below $1.91.

New data suggests a “marked intensification” of selling pressure on

XRP under pressure

According to CryptoQuant’s latest analysis, this growing pressure is most evident in the influx of XRP into centralized exchanges, most notably Binance, which still accounts for the majority of the token’s trading volume globally. Currency inflows are usually seen as an indicator of potential selling intentions, especially when they rise rapidly in a short period of time.

CryptoQuant data show that after a relatively calm phase with a stable, moderate inflow, conditions changed significantly from 15 December. Since then, daily inflows of XRP into Binance have skyrocketed. The figure ranged from 35 million to 116 million XRP, peaking on December 19.

The analytics firm said this trend reflects a transition among investors as long-term holders continue to make gains following the earlier rally, while more recent market participants appear to be capitulating and selling at a loss amid the ongoing decline.

This combination of profit realization and forced selling has increased downward pressure on the price action. As long as these high exchange rate inflows persist or accelerate further, XRP is unlikely to enter a steady accumulation phase. Under such circumstances, the current correction could not only last longer but also deepen, increasing short-term downside risks.

Institutional appetite

US investors have been able to gain exposure to spot XRP ETFs even as broader macroeconomic pressures weigh on digital asset prices. In fact, reports indicate that these investment vehicles have largely outperformed their BTC and ETH counterparts since their launch.

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According to SoSoValue, these ETFs have attracted $1.14 billion in inflows since their launch in November on December 26. The total assets of spot XRP ETFs have also increased to $1.25 billion.