XRP Price Struggles Amidst Institutional Sales: Here’s What’s Happening

XRP's price remains subdued despite steady activity, with the latest market commentary shedding light on the reasons behind the price stagnation. Jake Claver, CEO of Digital Ascension Group, points to structural factors rather than Ripple’s escrow releases or retail behavior as the primary influences on XRP’s supply.

How Large XRP Sales Are Happening Without Moving the Market

Claver explains that large XRP sales are occurring mostly through institutional channels, such as over-the-counter (OTC) trades and dark pools, where transactions remain private. These private sales allow XRP to change hands without impacting public exchange prices, which would otherwise lead to sudden price drops on exchanges.

By using OTC desks like FalconX and Kraken's dark pool infrastructure, large holders of XRP can move substantial amounts of the asset without creating noticeable market fluctuations. This method benefits early investors who accumulated XRP at much lower prices, allowing them to exit or rebalance positions without disturbing the market.

ETF Demand Continues to Absorb XRP Liquidity

Claver also noted that ETF demand is steadily depleting the liquidity pool of XRP available in OTC markets. This means that the growing interest from ETFs is reducing the supply of XRP available for private sales, and as a result, this could change the market dynamics. When OTC desks can no longer absorb supply as effectively, selling activity will become more visible on public exchanges, leading to price discovery on these platforms.

The key takeaway here is that XRP’s price suppression is not due to a lack of interest in the asset but rather a consequence of the way early investors are choosing to sell through private channels, which limits upward momentum despite ongoing demand.

XRP Price Chart Analysis

Despite these structural sales taking place off-exchange, XRP’s price remains stable for now. As long as the selling continues to happen through private channels, the asset's price might struggle to break higher, even if positive sentiment remains. However, the situation may change if OTC supply tightens, making the price more susceptible to changes from public market transactions.

The article explains that XRP’s price performance is a result of where and how large holders are selling their assets, with significant price movements likely only occurring once the OTC market runs out of supply.