XRP ETF Approval Fails to Ease Selling Pressure as Whale Activity Intensifies

XRP's ETF green light was supposed to be the tide that lifts all boats. Instead, it's looking more like a distress flare.

The Whale Exodus

Major holders aren't celebrating—they're cashing out. While the approval sparked a brief rally, the charts now show a steady stream of large transfers to exchanges. That classic 'sell the news' playbook is in full swing, and the big players are leading the charge.

Liquidity vs. Long-Term Vision

The irony is thick. An ETF, designed to funnel institutional money in, is currently creating an exit ramp for the original backers. It's providing the deep liquidity whales need to offload without crashing the price—a feature, not a bug, for those looking to take profits. Another case of Wall Street's infrastructure being used against its intended purpose. You've got to love finance.

What's Next for the Rest of Us?

For the average holder, this creates a frustrating tug-of-war. The fundamental case gets a massive credibility boost from the regulatory nod, yet the price action feels heavy. It's a stark reminder that in crypto, macro narratives and micro trader psychology often move in opposite directions. The ETF was the battle; winning the war for price stability is a whole different campaign.

Whale Transactions Are Dominant on XRP Exchanges

Analyst PelinayPA from CryptoQuant reports that most of the recent XRP flows into Binance come from wallets that contain between 100,001 and 1,000,001 units of XRP and wallets that have more than 1,000,001 units of the cryptocurrency. Such wallet sizes are generally indicative of funds that come from institutional investors as opposed to retail investors.

XRP ETF Onayı Satışları Durduramadı#Binance Inflow-Value Band grafiğini okuduğumuzda girişlerin büyük kısmı 100K – 1M XRP ve 1M+ $XRP bandından geliyor. Bu miktarlar küçük yatırımcının değil, balinaların borsaya aktif biçimde coin taşıdığını gösterir. Borsaya gönderilen büyük… pic.twitter.com/oOJXzzZ41g

From the data, the large transfers are also being accompanied by a continued reduction in the value of the altcoin, which indicates that the whales might be preparing for a sale rather than an accumulation, despite the event concerning the ETF.

ETF Approval Fails to Shift Market Structure

While the approval of ETFs is considered a bullish market catalyst, showing increased institutional investment, it seems rather subdued in the case of the altcoin market. Rather than encouraging buying, the approval has led to continued exchange inflows, a key sign of potential sell-side action.

CryptoQuant points out that retail investors are mostly excluded from such capital inflows, making the case for the fact that the current market actions are led by risk management or taking profits by larger traders.

Exchange Inflows Point to Ongoing Distribution Phase

The inflow chart for the exchange is indicative of recurring instances of XRP deposits to Binance, especially from the major wallet levels with high values. In the past, this has always corresponded with distribution stages and not accumulation phases.

As long as whales’ money inflows continue, it appears that it will be difficult for the altcoin to FORM an effective rebound, irrespective of positive news related to regulations and products.

Market Outlook Remains Cautious

The disconnect between the ETF approval narrative and on-chain behavior underscores a broader trend in crypto markets: fundamentals and structural flows often outweigh headline-driven optimism. Until whale inflows slow or reverse, the altcoin’s price may remain vulnerable to further corrections.