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XRP's Unconventional Move: Large Investors Show Faith as Retail Interest Drops and Regulations Stall

XRP's Unconventional Move: Large Investors Show Faith as Retail Interest Drops and Regulations Stall

Bitget-RWA2025/09/25 22:34
By:Coin World

- XRP whale wallets added 310M tokens in Q3 2025, signaling institutional confidence in its cross-border and DeFi utility despite weak retail adoption. - Technical upgrades like EVM-compatible sidechains boosted XRP's DeFi capabilities, while RLUSD stablecoin drove 21% DEX volume growth. - September saw whale exits and price drop below $3.00 as active addresses fell to 31,000, reflecting market risk-off sentiment and volatility risks. - Regulatory delays and ETF uncertainty persist, but analysts highlight

XRP's Unconventional Move: Large Investors Show Faith as Retail Interest Drops and Regulations Stall image 0

The price movement of XRP in the latter part of 2025 has been influenced by a mix of signals from major investors, institutional interest, and ongoing technical advancements. Large wallets holding between 10 million and 100 million XRP accumulated an additional 310 million tokens during the third quarter of 2025, raising their combined holdings to 8.11 billion XRP XRP Whale Accumulation Signals Undervalued Market Potential [ 1 ]. This trend, occurring even as retail participation waned, highlights the faith institutions have in XRP’s role as a cross-border settlement tool and as a foundation for DeFi. Data from the futures market backs this perspective, as

funding rates climbed to 0.07% in August 2025, outpacing Ethereum’s 0.05%, while CME’s XRP futures trading volume topped $1 billion for the quarter XRP Whale Accumulation Signals Undervalued Market Potential [ 1 ]. Historically, similar accumulation by whales has often come before major price surges, as witnessed during Bitcoin’s 2020–2021 rally XRP Whale Accumulation Signals Undervalued Market Potential [ 1 ].

Yet, a shift occurred in September 2025. Large holders began reducing their positions, with those owning 1–10 million XRP trimming their share by 0.27% of the total supply, and wallets with 100 million–1 billion XRP cutting back by 0.5% Will XRP extend decline to $2.5 as whales sell in September? [ 2 ]. Blockchain data showed a sharp drop in active addresses, falling to 31,000 in September from 581,000 in June Will XRP extend decline to $2.5 as whales sell in September? [ 2 ]. This risk reduction coincided with XRP’s price slipping below $3.00, mirroring a broader market move away from risk and weaker network engagement. Some large investors transferred as much as 160 million XRP in a single transaction, hinting at possible short-term price swings.

Recent upgrades to the XRP Ledger, such as an

Virtual Machine (EVM)-compatible sidechain, have expanded its DeFi potential. This sidechain supported 1,400 Ethereum-like smart contracts within just one week, boosting XRP’s attractiveness for decentralized finance while keeping transaction costs low XRP Whale Accumulation Signals Undervalued Market Potential [ 1 ]. Ripple’s RLUSD stablecoin, pegged to the US dollar and now valued at $90 million, has fueled a 21% monthly increase in decentralized exchange (DEX) trading volume XRP Whale Accumulation Signals Undervalued Market Potential [ 1 ]. These innovations strengthen XRP’s dual role in cross-border payments and DeFi, even as retail participation faces challenges.

The XRP/ETH ratio, a key indicator for altcoin rotation, found support during the third quarter’s whale accumulation. Institutional buying helped counterbalance weak retail sentiment, pointing to a possible turning point for XRP XRP Whale Accumulation Signals Undervalued Market Potential [ 1 ]. However, September’s downward trend saw the price test important support levels, with traders watching the 100-day EMA at $2.83 and resistance at the 50-day EMA at $2.95 Will XRP extend decline to $2.5 as whales sell in September? [ 2 ]. The Relative Strength Index (RSI) dropped from 61 to 44, and the Moving Average Convergence Divergence (MACD) indicated a sell signal, suggesting more downside risk if the $3.00 threshold is breached Will XRP extend decline to $2.5 as whales sell in September? [ 2 ].

Uncertainty around regulations continues to be a challenge. Delays in approving XRP-related ETFs have contributed to its short-term undervaluation, though institutional interest remains strong. Experts point out that XRP’s market cap seems low compared to its utility, and whale accumulation often comes before upward price moves XRP Whale Accumulation Signals Undervalued Market Potential [ 1 ]. If BlackRock’s iShares XRP Trust receives approval, it could trigger significant institutional investment, with some analysts forecasting a rise toward $3.50 in that scenario XRP Price Risks Further Loss: Ripple Whales Dump Millions [ 4 ]. On the other hand, persistent regulatory obstacles could lead to extended periods of volatility.

The current mix of market signals creates an opportunity for contrarian investors. While whale accumulation and technical progress point to undervaluation, declining retail interest and regulatory headwinds pose short-term risks. Past examples, such as Solana’s rally in 2023, show that tokens with strong on-chain use cases and concentrated whale backing can exceed expectations XRP Whale Accumulation Signals Undervalued Market Potential [ 1 ]. For those holding XRP long-term, its core strengths—affordable fees, cross-border capabilities, and DeFi integration—offer some protection against volatility, though short-term price movements remain closely tied to whale actions and broader economic trends.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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