Why is Ripple (XRP) price falling today?

XRP lost the most value compared to larger-cap alts.

Although most of the cryptocurrency market turned red today after BTC’s failed breakout attempt at $94,000, it was Ripple’s native token that fell the most, which is somewhat surprising given the impressive inflows into spot XRP ETFs in the United States.

However, other developments around the overall XRP ecosystem could have increased the immediate selling pressure. One of them is the behavior of the whales, which continued to have large quantities of tokens.

Although they have unloaded more than 1.4 billion pieces in the span of about a month, as reported in early November, they have not changed their minds and continue to do so. The latest wave of sales took place earlier this week, during which 140,000,000 tokens were “sold or redistributed,” according to Ali Martinez.

Another plausible reason could be the decline in demand for spot XRP ETFs. As reported earlier this week, financial vehicles linked to Ripple’s token have outperformed counterparts BTC, ETH and SOL since their inception in mid-November, but the amount of inflows has gradually declined.

They’re still in the green as their impressive streak continues, but total net inflows for Dec. 4 were just $12.84 million, falling short of the records of $243 million (Nov. 14), $164 million (Nov. 24), and $118 million (Nov. 20).

The latest rejection at $2.20 and subsequent retracement to current levels of $2.07 also shook up crowd sentiment. Santiment noted earlier that social media FUD surrounding XRP has reached its most intense level since October.

However, this could actually be a bullish sign for the asset since the last time this happened, its price soared by over 20% in the span of just a few days.

You might also like:

For now, however, XRP remains down nearly 10% year-to-date, even though the company behind this project has made 2025 its best year on record.