XRP Today News: Whale Sell-Off Causes Active Accounts to Plummet, ETF and Technicals Diverge

XRP has fallen for four consecutive days to $1.87, with technicals overshadowing bullish fundamentals. Active accounts plummeted in the second half of the year, after reaching a historical high of $3.66 in July, followed by profit-taking and whale sell-offs, resulting in a 17% decline. However, XRP spot ETF recorded a net inflow of $1.13 billion, continuing 26 days of inflows. Technical indicators remain well below the 50-day and 200-day moving averages, indicating a bearish outlook.

Active Accounts Halved Reveal Retail Investor Confidence Collapse

(Source: XRP Scan)

The most concerning on-chain activity data today comes from the collapse in active accounts. According to XRPScan data, the number of active XRP accounts (independent senders) surged to a 2025 high of 63,233 in January, then continued to decline, now falling below 20,000. This halving-like drop reflects a sharp contraction in retail participation.

Fluctuations in active account numbers are highly correlated with major events. The January peak was driven by Trump winning the presidential election, his pro-crypto policies, and SEC Chair Gensler’s resignation boosting market sentiment. Active accounts rebounded from 19,560 on July 8 to 49,001 on July 18, coinciding with XRP’s all-time high. On July 17, the US House of Representatives submitted the Market Structure Bill to the Senate, causing XRP to rise 14.69% and reach a new high.

Subsequently, XRP spot ETF launches were delayed (July 23), the US government shutdown occurred (October 1), and MSCI released consultation documents on digital asset treasury bills (DAT), leading to a sharp price drop below key support levels. These events invalidated bullish expectations and severely damaged investor confidence. The continued low active account count indicates retail investors have yet to recover from these shocks, and market enthusiasm remains at a freezing point.

ETF Attracts $1.1 Billion, Institutions Increase Holdings Against the Trend

Contrasting sharply with retail investor confidence collapse, institutional funds are pouring in aggressively. Since its launch, XRP spot ETF has accumulated a net inflow of $1.13 billion, marking 26 consecutive days of net inflows as of December 23, a rare occurrence in crypto ETF history.

This divergence between institutions and retail investors is the most noteworthy structural change in today’s XRP news. Retail investors panic-sell during price corrections, as evidenced by the halving of active accounts. Meanwhile, institutional investors are steadily allocating via ETFs, ignoring short-term price volatility. This “smart money” versus “hot money” opposition often signals an impending trend reversal, as institutions typically possess deeper information and a longer-term perspective.

The continuous inflow into XRP ETFs also suggests institutional confidence in the outlook through 2026. Professional fund managers conduct rigorous due diligence when allocating to ETFs, assessing regulatory environments, technological developments, and market demand. Their willingness to keep buying at current prices indicates that $1.86 is still undervalued relative to long-term targets. If new XRP spot ETFs expand further by 2026, this institutional buying will become a structural support for prices.

How to Resolve the Contradiction Between Technicals and Fundamentals

(Source: Trading View)

The core contradiction in today’s XRP news lies in the split between technicals and fundamentals. On the technical side, XRP closed Wednesday at $1.8613, well below the 50-day moving average of $2.1034 and the 200-day moving average of $2.3936, indicating a bearish bias. Four consecutive days of decline without holding key moving averages is a clear sell signal in traditional technical analysis.

Key Technical Price Levels: Three Defensive Lines

First Support: $1.75, breaking below which tests the deep support at $1.50

First Resistance: $2.0 psychological level, breaking through opens space to test the 50-day MA at $2.1034

Second Resistance: 200-day MA at $2.3936 and the $2.5 resistance zone, breaking through would confirm trend reversal

However, bullish fundamentals are forming signals that may outweigh technicals. The Market Structure Bill is expected to be reviewed in early January, paving the way for crypto-friendly regulations in Q1. Fed Chair Powell’s successor may lean toward lowering interest rates, further boosting market optimism. Strong demand for XRP spot ETFs indicates institutional confidence remains intact.

Resolving this contradiction depends on the battle around the $2.0 level. Reclaiming $2.0 would activate the upper trendline and the $2.5 resistance zone, with continued breakthroughs signaling a bullish trend reversal. Conversely, persistent drops below $1.75 and below the lower trendline would invalidate short- to medium-term bullish prospects, indicating a trend reversal to bearish.

Given current market dynamics, a cautious short-term (1-4 weeks) target is $2.0, mid-term (4-8 weeks) target $2.5, and long-term (8-12 weeks) target $3.0. If the bullish scenario over the next 6-12 months materializes, surpassing the all-time high of $3.66 is highly probable.