XRP Selling Pressure Mounts: Exchange Inflows Surge - Analyst Warns of Intensifying Sell Pressure

Intro: XRP coins falling rapidly, indicating a sharp price correction.

XRP Under Siege: Why Mounting Selling Pressure Signals a Deeper Correction and What Investors Need to Know

The cryptocurrency market, ever a crucible of speculation and innovation, often throws curveballs. For XRP holders, recent weeks have been particularly challenging. A significant drawdown, coupled with insights from CryptoQuant analyst Darkfost, paints a clear picture: XRP is currently grappling with intense selling pressure, indicating that a true accumulation phase is still a distant prospect. This isn't just a minor blip; it's a critical signal for investors navigating the volatile digital asset landscape in late 2025.

XRP Price Trend Last 7 Days

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📌 Event Background and Significance

XRP, the native cryptocurrency of the Ripple network, has always been a focal point for institutional interest and regulatory scrutiny. Its journey has been marked by significant price swings, often fueled by developments around Ripple's legal battles and its positioning in global remittance. Historically, XRP has seen periods of explosive growth, attracting a dedicated community of investors.

Chart Replacement: Visualizing large XRP inflows to exchanges, indicating potential sell-offs.

However, the current narrative for XRP is one of decline. The token has experienced a sharp correction, plummeting by around 50% from a peak near $3.66 down to an area around $1.85. This dramatic fall is noteworthy, but what truly underpins its significance is the accompanying on-chain data, particularly exchange inflows.

According to CryptoQuant analyst Darkfost (@Darkfost_Coc), this current drawdown is directly correlated with a substantial increase in XRP being sent to exchanges. This phenomenon is critical because it generally signifies an intent to sell. When a large volume of an asset moves from private wallets to centralized exchanges, it's typically positioned for liquidation, thus creating downward pressure on its price.

🏢 Darkfost's analysis specifically highlights Binance, which he notes "continues to concentrate the largest trading volumes among all exchanges." The influx of XRP into such a high-liquidity venue amplifies the potential for increased selling, making Binance a key bellwether for XRP's immediate price action. The period since December 15 has seen a marked shift, with daily XRP inflows to Binance surging from a moderate 35 million XRP to a peak of 116 million XRP on December 19. This sustained, elevated inflow is a strong indicator that the market is in a distribution phase, rather than preparing for a rebound.

📊 Market Impact Analysis

The intensifying selling pressure on XRP, as evidenced by these persistent exchange inflows, has profound implications for the market. In the short term, the current correction is likely to extend both in duration and depth. As long as large volumes of XRP continue to flood exchanges, it will be challenging for the token to find a stable support level, let alone initiate a recovery. Investors should brace for continued price volatility and potential further declines below the current $1.90 trading level.

Middle 1: Data streams converging intensely on an exchange, symbolizing rising sell pressure.

From a long-term perspective, the sustained inflow regime makes it difficult for XRP to establish a true "accumulation phase." This phase, typically characterized by declining sell pressure and gradual buying interest, is essential for a healthy price floor and future growth. Without it, any rallies are likely to be short-lived, met swiftly by eager sellers.

This shift in market dynamics also reflects a change in investor behavior. Darkfost suggests that while a significant portion of the market was previously committed to a holding strategy since October, the recent trend indicates a move towards profit-taking for older positions and, more concerningly, capitulation and loss selling from more recent entrants. This combination creates a powerful negative feedback loop, exacerbating the sell-off.

💰 The XRP-specific challenges are not occurring in a vacuum. The broader crypto market is suffering from what Darkfost characterizes as a "liquidity constrained" environment. The market cap of major stablecoins, often seen as a proxy for fresh capital entering the crypto space, has stagnated for several weeks. This indicates that new "fiat-to-crypto" liquidity is not entering the market at previous rates. While existing liquidity might still be within the crypto ecosystem, it's largely "sidelined," meaning investors are not deploying it into active trades. Quantitatively, the average monthly inflow of stablecoins to exchanges has been cut in half, dropping from $136 billion to around $70 billion between September and now, highlighting a significant reduction in active buying power.

📌 Key Stakeholders’ Positions

The primary voice in this analysis is CryptoQuant analyst Darkfost, whose on-chain observations are driving the current bearish outlook for XRP. His position is clear: the data unequivocally points to intensifying selling pressure, driven by substantial exchange inflows. He argues that until these elevated inflows subside, an accumulation phase for XRP remains improbable, suggesting further price depreciation is on the cards. This analysis provides a critical counter-narrative to any lingering optimism, urging investors to approach XRP with caution.

Beyond the technical analysis, Darkfost also highlights a pervasive shift in general market sentiment, noting that "the general consensus has turned bearish," based on a composite of media articles, social media data (from X), and other sentiment indicators. This broad bearish sentiment among retail and even institutional players is a significant factor in market psychology, often leading to self-fulfilling prophecies of decline.

Middle 2: Analyst scrutinizing on-chain data, highlighting critical market signals.

🐻 However, Darkfost adds a nuanced perspective often understood by seasoned investors: "when a shared consensus forms, the market tends to reverse and prove the majority wrong." He cites similar setups observed between July and October 2024 and between February and April 2025, suggesting a potential contrarian signal. This implies that while the short-term outlook is grim, a universally bearish sentiment might eventually precede a reversal, although he cautions against treating it as a precise timing tool, especially if a prolonged bear market unfolds.

Stakeholder	Position/Key Detail
CryptoQuant Analyst Darkfost	XRP facing intensifying sell pressure; not in accumulation; further correction likely.
XRP Holders (Older Positions)	Engaging in profit-taking after previous gains.
XRP Holders (Recent Entrants)	Experiencing capitulation and loss selling.
💰 Broader Crypto Market	Suffering from liquidity constraints; stablecoin stagnation; declining fiat inflows.
💰 General Market Sentiment	📉 Shifted to broadly bearish, potentially a contrarian indicator for the long-term.

📌 🔑 Key Takeaways

• XRP is experiencing significant sell pressure due to increased exchange inflows, particularly on Binance, indicating a distribution phase rather than accumulation.
• The current market conditions are driven by a mix of profit-taking from long-term holders and capitulation from more recent investors, fueling further price declines.
• The broader crypto market is liquidity-constrained, with stablecoin growth stagnating and fiat inflows significantly reduced, impacting overall buying power.
• While widespread bearish sentiment can sometimes precede market reversals, investors should not rush into buying, as extended corrections are possible, especially given the macro liquidity crunch.

🔮 Thoughts & Predictions

The data points from Darkfost are stark and, frankly, hard to ignore. The persistent high exchange inflows for XRP, especially into a behemoth like Binance, strongly suggest that the current price level is not a floor but rather a temporary stop on a downward trajectory. Given the prevailing macro liquidity constraints, where stablecoin inflows are halved and fresh fiat capital remains on the sidelines, I anticipate that XRP could retest lower support levels, possibly even breaching the $1.50 mark in the short-to-medium term.

This isn't just about XRP; it's a microcosm of a broader market environment where capital is scarce and investors are risk-averse. The capitulation from newer entrants, combined with strategic profit-taking from older positions, creates a powerful negative feedback loop. However, the universally bearish sentiment, as noted by Darkfost, often sets the stage for a contrarian reversal. I believe that a true accumulation opportunity for long-term XRP investors will emerge once this wave of capitulation runs its course and exchange inflows demonstrate a sustained decline.

For now, the focus should be on capital preservation and identifying genuine signs of market health returning, such as increased stablecoin market cap growth. The key will be patience and meticulous on-chain monitoring, as the path to a new bull cycle for XRP likely involves a period of extended consolidation at significantly lower price points.

🎯 Investor Action Tips

• Monitor XRP Exchange Inflows Closely: Pay specific attention to data from major exchanges like Binance. A consistent decrease in inflows would be a strong signal for potential stabilization or accumulation.
• Consider Reassessing Risk Exposure: If you hold XRP, review your portfolio's risk tolerance. Setting dynamic stop-loss orders around key support levels (e.g., around $1.70 or $1.50) can help manage downside risk during this period of high sell pressure.
• Prepare for a Buy-the-Dip Strategy: For long-term investors, this extended correction could present compelling entry points. Identify your desired accumulation range and consider dollar-cost averaging once signs of bottoming (e.g., declining inflows, stablecoin liquidity returning) begin to appear.
• Diversify and Observe Broader Market Liquidity: Don't place all your bets on a single asset. Diversify your crypto holdings and keep a close eye on the overall stablecoin market cap and fiat inflows as indicators of renewed market health and liquidity.

🔮 Future Outlook

💰 The immediate future for XRP remains challenging, dictated primarily by the persistence of selling pressure and the broader market's liquidity woes. For XRP to reverse its course and enter an accumulation phase, we would need to see a significant and sustained reduction in exchange inflows, indicating that sellers are exhausted and buyers are starting to absorb the supply. Furthermore, a revitalization of the stablecoin market cap and renewed fiat-to-crypto inflows would signal fresh capital returning to the overall crypto ecosystem, which is crucial for any asset's sustained growth.

Last: Market indicator sharply rising, signaling an intensification of selling sentiment.

💧 However, the long-term narrative for XRP isn't entirely bleak. The very bearish sentiment identified by Darkfost, while a short-term headwind, has historically preceded market reversals. For astute investors, a prolonged period of capitulation at lower price points could present a significant opportunity for long-term accumulation. Once the dust settles, and assuming continued regulatory clarity around Ripple's operations (a factor often underlying XRP's value proposition), XRP could be well-positioned for a strong rebound when market conditions improve and liquidity returns.

💧 The next few months will be a test of patience for XRP holders. Monitoring on-chain metrics, macro liquidity trends, and general market sentiment will be paramount. Those who can navigate this period of heightened selling pressure and strategic positioning may find themselves well-rewarded when the market eventually shifts from distribution back to accumulation. The key is to avoid emotional decisions and base investment strategies on concrete data and a clear understanding of market cycles.

📘 Glossary for Serious Investors

⚖️ Accumulation Phase: A market period characterized by institutional and savvy investors gradually buying up an asset, often after a significant price drop, in anticipation of future appreciation. It typically features low volatility and sideways price action as supply is absorbed.

⚖️ Distribution Phase: The opposite of accumulation, this phase occurs when large holders and institutions begin to sell off their assets, often after a period of price appreciation. It is marked by increasing selling pressure, higher volatility, and often precedes a price decline.

⚖️ Capitulation: A dramatic and rapid sell-off by investors who abandon their holdings due to fear, typically occurring near the bottom of a market downturn. It often signals the final stage of a bear market before a potential recovery.

🧭 Context of the Day

Amid prevailing market illiquidity, XRP's mounting selling pressure signals a critical period for investors to exercise caution and strategically position for potential long-term value.

📈 RIPPLE Market Trend Last 7 Days

Date	Price (USD)	7D Change
12/23/2025	$1.90	+0.00%
12/24/2025	$1.87	-1.52%
12/25/2025	$1.86	-2.11%
12/26/2025	$1.83	-3.71%
12/27/2025	$1.84	-3.12%
12/28/2025	$1.87	-1.52%
12/29/2025	$1.88	-1.38%

Data provided by CoinGecko Integration.

💬 Investment Wisdom

"The best investment strategy is to be a good student of the markets."
— Peter Lynch

Crypto Market Pulse

December 29, 2025, 10:51 UTC

Total Market Cap

$3.06 T ▲ 0.14% (24h)

Bitcoin Dominance (BTC)

57.24%

Ethereum Dominance (ETH)

11.70%

Total 24h Volume

$101.43 B

Data from CoinGecko

This post builds upon insights from the original news article. Original article.

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