The cryptocurrency XRP has encountered significant downward momentum, plunging to fresh lows on Friday. A confluence of institutional outflows and broader macroeconomic anxiety has triggered a sharp sell-off, though on-chain data reveals a notable divergence in behavior among major holders.
Macroeconomic Jitters Trigger Broad Market Decline
The sell-off extends far beyond XRP, forming part of a pronounced “risk-off” shift across global financial markets. This sentiment was ignited by President Trump’s nomination of Kevin Warsh as the next Chair of the U.S. Federal Reserve. Perceived as a monetary policy “hawk,” Warsh’s nomination stirred investor concerns over tighter future policy and reduced liquidity.
The market reaction was severe and widespread. Silver prices collapsed by 33 percent, gold fell over 10 percent, and Bitcoin touched a nine-month low. XRP, caught in the downdraft, moved in lockstep with these major commodities and digital assets.
Institutional ETF Outflows Spark Cascading Liquidations
A primary catalyst for XRP’s specific decline is a substantial withdrawal of institutional capital. Recent data indicates that U.S. spot ETFs witnessed record outflows approximating $93 million on Thursday and Friday. The Grayscale XRP ETF was a significant contributor to this negative flow.
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This capital flight triggered a chain reaction on the derivatives market. Within a 24-hour window, long positions worth more than $57 million were forcibly liquidated. An extreme imbalance between buyers and sellers forced a rapid repricing of the asset, at one point driving its value to a new 52-week low of $1.73.
Technical Breakdown Contrasts with Accumulation by Large Holders
From a chart perspective, the outlook has deteriorated. The breach of the $1.93 level confirmed a “Death Cross” formation, a classic bearish technical signal. Price action is now testing a critical support zone extending down to $1.65. Market analysts caution that a sustained break below this area could pave the way for a move toward $1.50.
Contrasting this technical weakness and ETF outflows, on-chain metrics show large-scale investors, or “whales,” are taking the opposite approach. Wallets holding more than one million XRP registered inflows this week for the first time since September 2025. This activity suggests that well-capitalized addresses are interpreting the panic-driven sell-off as a strategic buying opportunity.
Market attention is now firmly fixed on the defense of the $1.65 support level. Holding this zone could validate a bullish “Spring” pattern anticipated by some technical analysts. Conversely, a decisive breakdown would make a bearish scenario with targets around $1.00 by 2026 increasingly probable.
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