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

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

Fresh data suggest a “clear intensification” of selling pressure on XRP, which has coincided with a sharp market correction that has seen the asset lose roughly 50% of its value, after falling from a recent high near $3.66 to around $1.85.

XRP Under Pressure

According to the latest analysis by CryptoQuant, this growing pressure is most evident in XRP inflows to centralized exchanges, particularly Binance, which continues to account for the largest share of the token’s trading volume globally. Exchange inflows are commonly viewed as a proxy for potential selling intent, especially when they rise rapidly over a short period.

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

The analytics firm stated that this trend reflects a transition among investors, as long-term holders are increasingly engaging in profit-taking 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 added to downward pressure on price action. As long as these high exchange inflows continue or accelerate further, XRP is unlikely to enter a steady accumulation phase. Under such conditions, the current correction may not only last longer but could also deepen, thereby increasing downside risks in the near term.

Institutional Appetite

US investors have been able to gain exposure to spot XRP ETFs even as broader macroeconomic pressures weigh on digital asset prices. Reports suggest that these investment vehicles have even outperformed the BTC and ETH counterparts for the most part since their launch.

According to SoSoValue, since launching in November, these ETFs have attracted $1.14 billion in inflows as of December 26. Total assets held by spot XRP ETFs have also climbed to $1.25 billion.

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