Price Of XRP Slides as Investors Loses Confidence

Ripple’s series of major announcements failed to buoy XRP, which fell over 9% this past weekend, highlighting a widening gap between the company’s ambitious initiatives and market sentiment toward the token. Even the highly anticipated Swell conference—featuring major financial institutions such as Mastercard, Nasdaq, and Galaxy Digital—could not halt the sell-off, suggesting that market psychology outweighs headline-driven optimism.

Since late September, XRP has tumbled from $3.09 to $2.30, a near 25% drop. While crypto is known for volatility, analysts note a striking pattern: profits surged even as prices fell. Glassnode data shows the average daily volume of realized profits jumping from $65 million to $220 million, a 240% increase. This surge indicates that investors are taking profits rather than buying into positive announcements, signaling growing skepticism and caution within the market.

Fundraising vs. Token Reality

Ripple’s $500 million funding round—backed by Citadel Securities, Galaxy Digital, and Brevan Howard—on the surface represents strong institutional support. The company continues expanding with acquisitions such as Palisade and Hidden Road, while actively developing its RLUSD stablecoin to strengthen its presence in the institutional market.

However, analysts caution that a significant portion of Ripple’s $40 billion valuation is tied to its massive XRP reserves: 34.76 billion tokens currently valued at over $80 billion. With the XRP Ledger generating less than $200,000 in monthly fees, some investors privately question whether this fundraising is more about gaining privileged access to Ripple’s token stockpile than investing in its operational growth.

Technical indicators reinforce this cautious outlook. XRP recently formed a “death cross,” with the 50-day moving average falling below the 200-day—a widely watched signal of long-term bearish momentum. The relative strength index (RSI) hovers around 40, signaling persistent weakness, while XRP repeatedly failed to breach the $2.50 resistance level, suggesting limited buying pressure. Institutional inflows reflect similar caution: only $43.2 million flowed into XRP products last week, modest compared to $421 million for Solana and $57 million for Ethereum.

Adding to uncertainty, Ripple has abandoned plans for an IPO despite its court victory against the SEC. While strategic, forgoing the public markets removes a symbolic milestone that could have strengthened investor confidence. Ripple is now relying on private fundraising and token-driven growth, leaving some market participants skeptical about the token’s long-term trajectory.

The Road Ahead for XRP

The current response highlights a sobering reality: despite fundraising successes, acquisitions, and high-profile partnerships, XRP has yet to inspire broad investor confidence. Headlines and corporate achievements alone are insufficient to offset profit-taking and technical bearish signals.

Looking ahead, XRP’s ability to regain momentum will depend on tangible adoption, demonstrable on-chain utility, and a clear path for sustainable token-driven growth. Without these indicators, the token may continue to face downward pressure, underscoring that market confidence is ultimately earned through real-world results rather than narrative alone.