XRP Holders Face Worst Period Yet as Institutional Players Squeeze Retail Investors, Expert Warns

Retail XRP holders are getting crushed—and the big players aren't helping.

An industry expert points to the current climate as the most punishing stretch for the average XRP investor. The reason? A mounting pressure campaign where institutional strategies are systematically squeezing out smaller participants.

The Institutional Playbook

Firms aren't just trading XRP; they're deploying sophisticated tactics that leave retail traders at a distinct disadvantage. Think algorithmic walls, dark pool maneuvers, and leverage plays the little guy can't match. It's a classic finance tale—the house always wins, and in crypto, the 'house' is building a bigger fortress.

Why Retail Bears the Brunt

Without the capital or tools to compete, retail portfolios are taking the hit. Volatility gets amplified, liquidity dries up at key moments, and the promised decentralization of crypto starts to look a lot like Wall Street with a blockchain facade. Another day, another reminder that your 'financial freedom' is someone else's spreadsheets.

The squeeze is on. And for XRP holders watching their positions, the only thing dropping faster than trust might be the price.

XRP Worst Period Explained With Price Prediction, Good Buy & 2026 Risks

Institutional Pressure on Retail Investors

Scott’s December 21 post on X detailed how institutional behavior rather than simple market cycles drives this challenging period for XRP holders, and the implications are reaching retail investors across the community.

Scott stated:

This is the worst time period for XRP holders

Why?

All these investment firms are trying to squeeze retail for every penny to cover their own 4th qtr shortfall after this horrible year

That is why you are seeing all the propaganda flying around.

Remember to these people?…

Scott’s comments come as XRP trades below $2 following months of volatility. He argues that large investment firms are using retail liquidity to offset losses rather than allowing organic price discovery to take place. This dynamic explains the surge in aggressive narratives and also the emotional messaging surrounding XRP, making the XRP worst period particularly challenging for individual holders right now. Along with this, some analysts believe the pressure on retail investors has intensified over recent months.

Failed Predictions and Market Manipulation

The xrp price prediction landscape faces credibility issues, according to Scott’s analysis, and this makes it even harder for investors to figure out if this is actually a good time to buy. He criticizes the recurring cycle of bold forecasts that fail to materialize, arguing that many rely on chart extrapolation rather than fundamentals.

Scott said:

This pattern persists because retail investors continue looking to influencers for guidance, even after multiple failed calls have been documented. The absence of accountability enables misleading narratives to gain traction, complicating decisions about whether opportunities to buy XRP currently exist. Market commentary monetizes investor anxiety rather than providing honest risk assessments, creating additional challenges during what many consider the worst period for XRP holders. Some observers note that this XRP worst-case scenario could continue until proper oversight is implemented.

2026 Regulatory Framework as Potential Solution

Scott has identified regulation as the critical element catalyzing improved market conditions, believing various major structural changes remain unachievable without it. Across multiple essential enforcement frameworks, the absence of consistently applied rules has engineered market dynamics that reward opacity over transparency, leaving retail participants exposed during numerous significant downturns. He emphasized that ongoing U.S. legislative efforts, involving several key initiatives around the CLARITY framework expected to advance in 2026, represent a potential inflection point that could transform the regulatory landscape.

The outlook for XRP in 2026 depends significantly on whether certain critical enforcement mechanisms actually implement these regulatory measures across various major jurisdictions. Scott expects the challenging conditions to persist until authorities apply legal standards evenly, with institutional manipulation continuing to threaten retail investors across several key market periods. Multiple essential factors continue to evolve, making it particularly difficult to answer whether XRP is a good buy.