Despite a nice (but limited) inflow zone of green ETFs, Ripple’s XRP is moving against the tide.
Key cohorts are reducing their exposure and Open Interest (OI) is in free fall. This shift in tone is perhaps worth observing before the next move unfolds.
ETFs calm down
After strong capital inflows that brought total net assets to around $1.24 billion, recent data showed the pace was slowing. Daily inflows declined, with several sessions barely seeing any new capital.
Even though prices have held up, accumulation has clearly slowed.
Source: SoSoValue
Assets remain high, so this is not an exit. However, this means that the initial wave of demand driven by ETFs is fading.
AMBCrypto previously reported that despite capital inflows, the price of XRP has not changed much; institutional purchases took place calmly. At the time, whale wallets rebuilt exposure and helped stabilize prices.
What has changed now is that this support is dwindling.
LTHs let go
HODL Waves from Glassnode showed that wallets holding XRP for 2-3 years (generally considered the ones to stay) have reduced their share of the supply.
This cohort fell from 14.26% at the end of November to approximately 5.66% at the end of December, a significant drop in just one month. This type of exit consists of LTHs taking profits or withdrawing.
Source: Glassnode
When stable holders leave while inflows decline, this weakens structural support. This leaves the price more exposed to impulsive changes.
Derivatives decline
XRP’s OI on Binance has fallen to around $450 million, its lowest level since November 2024. This is a sharp drop from previous highs, so there are widespread position closures – especially for leveraged long positions.
Source: CryptoQuant
When OI falls this quickly, it usually means traders are exiting rather than staying in anticipation of possible rises. Less leverage means less speculation, and in this case it further shows that confidence is dwindling.
Until participation recovers, price action could remain fragile and reactive.
Final Thoughts
- XRP is losing the structural support that once kept prices stable.
- Unless demand returns, XRP’s next move could be driven by a lack of confidence.
