XRP: Institutional Money Flows Back In, but Uncertainty Lingers

XRP, long held back by its judicial battle with the SEC, returns to the forefront. While institutional investors quietly strengthen their positions, a series of massive liquidations shakes the market. Between unstable technical signals and behind-the-scenes accumulation strategies, crypto is going through a zone of high instability. Should this be seen as a simple correction or the beginning of a strategic repositioning?

Significant but ambiguous institutional movements

On August 7, a few hours after the announcement of the resolution of the dispute between Ripple and the SEC, XRP jumped 4%, rising from $3.15 to $3.25. Following this, volumes exploded, with more than 140 million tokens traded, marking an immediate resurgence of activity around the crypto.

Many analysts consider this sequence a turning point, as it signals the return of flows to an asset suspended during months of regulatory uncertainty. In the first quarter alone, investment products linked to XRP crypto recorded net inflows of $37.7 million.

Interest in the derivatives market remains strong. The open interest on XRP futures contracts has crossed $3 billion, indicating a sharp rise in speculative activity.

Behind this apparent recovery, the picture remains mixed, fueled by ambiguous signals from institutional players. While some quietly accumulate XRP, others reduce their exposure, revealing a shared interpretation of the asset’s short-term potential. Thus:

• Coinbase reduced XRP wallet holdings by 57%, dropping from 52 to 35 wallets;

• Accumulation strategies such as TWAP (Time-Weighted Average Price) and VWAP (Volume-Weighted Average Price) are used to enter the market without disrupting prices;

• XRP Ledger adoption is progressing, notably through stablecoins, with a 46% increase in volumes, driven by the introduction of RLUSD, Ripple’s stablecoin.

These diverging dynamics give rise to mixed interpretations. Coinbase’s withdrawal could signal increased caution or merely an asset management maneuver. This contrast fuels questions about the true intentions of major players and reinforces market sentiment volatility.

Heightened volatility and signs of market instability

Alongside this institutional activity, the market experienced a period of strong instability marked by a series of liquidations and a sharp price drop. In the days following the peak at $3.27, XRP suffered a 6% retreat, triggering more than $59.3 million in liquidations.

Network validators also detected suspicious transfers between wallets associated with exchange platforms, suggesting possible wash trading practices. While no formal evidence has been presented, these recurring movements, not justified by user activity, raise concerns about the crypto market’s real stability.

This sequence of volatility occurs in an already tense technical context. XRP is currently evolving within a generally bearish configuration. On-chain data are mixed: the RSI remains above 50, which is bullish, while the MACD maintains a positive position.

The price oscillates around the critical threshold of $3.30, unable to break it sustainably. In case of a downward break, the support level at $3.00 could be quickly tested. Conversely, if buyers regain control, the next major resistance lies at $3.40, with the old historical high of $3.66 in sight.

At this stage, XRP appears as a dual-read asset: unstable and risky for short-term investors, but potentially attractive for medium-term positioning if fundamentals such as XRP Ledger adoption by Guggenheim and the growth of stablecoins like RLUSD confirm.