XRP’s Plunge: ETFs Dive and Whales Sit Pretty – Who Will Save the Day?

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Alas! The profitability of XRP (XRP) has plummeted to a 21-month nadir, whilst the spot exchange-traded funds (ETFs) have achieved the ignoble feat of their first negative month.

Yet, do not be fooled! The great whales of the market, those colossal holders of XRP, show no signs of hasty retreat. A striking contradiction emerges: while the retail and institutional factions grow weak, the mighty whales stand firm, unwilling to part with their precious tokens. A curious spectacle, to be sure, as the fifth-largest cryptocurrency by market capitalization is caught in a tug of war between these dueling forces!

The Sinking Ship: XRP’s Underwater Holders and Waning Institutional Demand

Ah, the folly of many! Glassnode’s on-chain data reveals a pitiful 43.4% of XRP’s circulating supply still reaps profit at a meager $1.33. A sorry state of affairs, not seen since July 2024.

Lo and behold! Over 56% of these tokens are now held at a loss, a reflection of XRP’s staggering decline. Six consecutive months of red have reduced the token by more than 60%-one might say it’s the very definition of a ‘bear market plunge’!

“With more than half of the supply in the deep, investors who bought above $2 over the past 12 months have seen their losses mount to a staggering $20M – $110M per day since November 2025,” quips Glassnode.

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Meanwhile, the once-predictable institutional demand for XRP via spot ETFs has gone the way of all fleeting things. SoSoValue data mournfully declares that March 2026 marked the first net outflow month since the ETF’s birth in late 2025, with a staggering $31.16 million fleeing the products. And early April? An additional $1.25 million has taken flight!

Total assets under management in US-listed spot XRP ETFs have fallen from a peak of $1.65 billion in January to a mere $950.58 million. Oh, how the mighty have fallen!

Whales Stand Firm as XRP Struggles at the Crossroads

But wait! There’s a twist in this tale. Despite all these bearish signals, a single bright spot appears. Analyst Arab Chain reports that whale inflows to Binance have plunged to their lowest point since early 2026.

“Daily whale inflows to Binance have dwindled to a mere 12.60 million XRP, a paltry sum compared to previous surges where millions of XRP flooded in. The 30-day cumulative flow indicator too has sunk to around 1.44 billion XRP, its lowest level since the dawn of 2026,” the analyst soberly observes.

The declining whale transfers to exchanges may serve as a hint-a glimmer of hope-that the supply of XRP available for sale is dwindling. This could limit the market’s downward spiral, potentially setting the stage for a grand reversal. But let us not be deceived: this pattern does not guarantee a glorious comeback!

“Historically, large inflows to exchanges signal increased selling pressure, while diminished inflows suggest whales are hoarding their tokens off-platform, which bodes well for price stability,” the analyst adds, cautiously optimistic.

The widening rift between retreating institutional demand, suffering holders, and the quieting whales suggests a market at a crossroads, poised for either collapse or miraculous recovery. Will the fading retail interest and institutional exodus spark a final capitulation, or will the steadfast whales hold the line and stabilize XRP’s price?

For now, the altcoin follows the fate of the broader market. BeInCrypto Markets data reveals that XRP has dipped by 1.89% in the last 24 hours, trading at a sorry $1.32.

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2026-04-07 13:55