XRP News Today: Institutional Shifts Redefine XRP's Future as Coinbase Cuts Holdings

Data indicates that Coinbase has significantly reduced its XRP holdings, raising questions about the cryptocurrency’s market dynamics and the broader implications for exchanges and institutional investors. According to analysis from XRPScan and XRPwallets, Coinbase’s XRP balance has plummeted from over 780 million tokens to just 199.47 million—representing a 69% decline since the second quarter of 2025 and a 57% drop in a single month. This sharp reduction has pushed Coinbase from the fifth-largest XRP holder to the tenth, with the remaining balance largely attributed to retail traders rather than institutional outflows [1].

The decline in Coinbase’s XRP reserves coincides with a growing institutional presence in the digital asset space. A key factor in this shift is the recent collaboration between Coinbase and BlackRock, which was announced in early August. This partnership enables institutional investors to access digital assets more easily, including XRP, through the Coinbase Prime platform integrated with BlackRock’s Aladdin system. XRPwallets has speculated that this collaboration may be a factor in the large-scale movements of XRP, with BlackRock potentially absorbing a significant portion of institutional holdings [1].

The trend of XRP outflows is not exclusive to Coinbase. Other major exchanges, such as Upbit and Uphold, have also seen substantial reductions in their XRP balances. For instance, Upbit’s XRP holdings fell from 6.03 billion to 5.84 billion tokens, while Uphold’s dropped from 1.907 billion to 1.746 billion. These movements suggest a broader shift in XRP liquidity dynamics, with institutional players increasingly dominating the asset’s flow [1].

XRP’s price activity in recent weeks reflects this institutional influence. The token has been trading in a tight range between $2.81 and $2.87, forming a symmetrical triangle pattern that analysts view as a key indicator of potential price movement. Large wallets have been accumulating approximately 340 million XRP over the past two weeks, even as institutions liquidated $1.9 billion worth of XRP since July [4]. Technical indicators such as RSI and MACD show neutral to slightly bullish momentum, with $2.82 acting as a key support level and $2.86–$2.88 as overhead resistance. A breakout above $3.00 could signal a more substantial price move, with $3.30 acting as a confirmation level [3].

The broader implications of these developments are significant. The growing institutional involvement in XRP may help stabilize its price and increase market liquidity, but it also introduces risks related to volatility and market manipulation. As institutional players accumulate larger positions, any sudden withdrawal or large trade could exacerbate price swings, especially in a market still grappling with regulatory uncertainties. Analysts remain divided, with some projecting a potential rise to $7–$13 in the long term and others cautioning against over-optimism without clearer regulatory and macroeconomic signals [3].

For smaller crypto exchanges and startups, the rise in institutional demand presents both opportunities and challenges. While increased liquidity can bring stability, competing with institutional resources is difficult for smaller players. Regulatory scrutiny and the need for robust compliance frameworks further complicate their ability to operate effectively in a market increasingly shaped by institutional capital [2].

Looking ahead, key factors to watch include the success of potential XRP ETFs, regulatory developments, and broader macroeconomic trends such as Fed policy shifts. For now, XRP remains at a critical juncture, with its next move likely influenced by whether institutional buying continues and whether retail traders step in to support the asset’s price action.

Source: [1] Coinbase Wallet Shows Massive XRP Cuts, What's Going ... (https://www.mitrade.com/insights/news/live-news/article-3-1093485-20250904) [2] What Does Coinbase's Declining XRP Reserve Mean for ... (https://www.onesafe.io/blog/coinbase-xrp-reserves-plunge-blackrock-impact) [3] XRP Symmetrical Triangle Forms Under $3.00, $3.30 ... (https://www.coindesk.com/markets/2025/09/04/xrp-symmetrical-triangle-forms-under-usd3-00-usd3-30-breakout-level-in-focus) [4] XRP Symmetrical Triangle Forms Under $3.00, $3.30 ... (https://finance.yahoo.com/news/xrp-symmetrical-triangle-forms-under-045802955.html)