XRP News Today: Regulatory Uncertainty and Whale Selloffs Deepen XRP's Downward Spiral

Ripple’s XRP price has come under renewed bearish pressure as key on-chain metrics indicate increasing selling activity and uncertainty among traders. Exchange reserves for XRP have climbed to their highest level in a year, with Binance alone holding over 3.6 billion XRP as of September 3. This rise in exchange reserves suggests higher selling pressure and volatility, as observed in on-chain data from CryptoQuant, which shows 9 out of 11 major crypto exchanges experiencing inflows of XRP in recent weeks. The increased concentration of XRP on exchanges has further exacerbated downward momentum, with the price dropping over 25% from its all-time high of $3.65 in July.

Negative whale flow has further exacerbated the bearish outlook. According to CryptoQuant’s Whale Flow 30-DMA data, large investors have been aggressively offloading their holdings, with whale activity falling sharply after more than 99% of holders were at a profit during the recent price rally. Whale Alert reported that a single whale dumped over 35 million XRP—worth more than $99 million—into Coinbase within 24 hours, signaling a potential peak in the bullish cycle. This trend mirrors the distribution patterns seen before the price correction earlier in the year, raising concerns about further downside potential.

In addition to whale activity, the total open interest in XRP futures has also declined, reflecting reduced trader optimism. As of the latest 24-hour update, XRP futures open interest on major exchanges fell by nearly 0.50%, with only a modest increase noted on CME. Despite some analysts, including Bloomberg, forecasting a 90% chance of approval for spot XRP ETFs by October 17, the uncertainty surrounding regulatory outcomes has kept many investors on the sidelines. Multiple ETF issuers, including Grayscale, Bitwise, and 21Shares, have submitted applications for XRP ETFs, but the SEC’s delayed decision continues to create a cloud of uncertainty.

From a technical standpoint, XRP has failed to maintain momentum above key psychological levels. The price currently trades below the 50-day moving average at $3.09, with the 100-day and 200-day moving averages sitting at $2.69 and $2.48, respectively. The Relative Strength Index (RSI) has dropped to 43, signaling further bearish sentiment. Analysts such as Ali Martinez have warned that if bulls fail to defend the $2.74 support level, the price could fall as low as $2.35. Meanwhile, the broader crypto market remains under pressure due to macroeconomic concerns, with traders closely watching upcoming U.S. jobs data and the Federal Reserve’s rate decision on September 17.

Despite these bearish indicators, some analysts remain cautiously optimistic. Recent regulatory developments in the U.S., including a joint statement from the SEC and CFTC, have signaled a more open approach to crypto trading, which may benefit XRP in the long term. Additionally, Ripple’s strategic partnerships, including its collaboration with Thunes to expand cross-border payment capabilities, have the potential to drive adoption and utility. However, for now, the on-chain data and market sentiment suggest that XRP is facing a critical period of consolidation, with a clear breakout above $3.00 needed to rekindle bullish momentum.

Source: [1] 5 Reasons Why XRP Price Isn't Ready for Recovery (https://coingape.com/5-reasons-why-xrp-price-isnt-ready-for-recovery/) [2] Two on-chain indicators to monitor as XRP slumps (https://www.fxstreet.com/cryptocurrencies/news/ripple-price-forecast-xrp-bearish-bias-extends-as-whales-de-risk-202509041700) [3] XRP Price Prediction: $700 Million Whale Transfer Shocks Community Is Wall Street Quietly Buying? (https://cryptonews.com/news/xrp-price-prediction-700-million-whale-transfer-shocks-community-is-wall-street-quietly-buying/) [4] Analyst Predicts The XRP Price If 10% Of Global Assets ... (https://www.mitrade.com/insights/news/live-news/article-3-1100234-20250905) [5] XRP Could Surge Past $3 as US Regulatory Easing Fuels ... (https://bravenewcoin.com/insights/xrp-price-prediction-xrp-could-surge-past-3-as-us-regulatory-easing-fuels-cross-border-momentum)