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XRP is recording increased sell-offs, with evidence in recent data suggesting that 94% of its circulating supply is in profit. Analysts remain cautious that this scenario may further exacerbate pressure in the months to come, with investors intending to realize their earnings after an uptrend period of many years in gold price movements.
The selling off tendency, supported by long-term investors who began to sell XRP in periods when the currency remains undervalued, has sparked fears of future volatility. Institutional investors and large holders have not intervened to stabilize the market so far, leaving XRP vulnerable to additional declines.
According to market observers, 94 percent is a tipping point, and in the past, when this figure was severely hit, it tended to cause a significant exodus. The future of this token is unclear in the short term due to the lack of renewed demand by whales or financial institutions.
According to the 3CQS Crypto Screener, XRP's volatility is among the top assets in terms of 15-minute and 24-hour indicators. Although the screener cannot determine direction, it identifies the possibility of sharp price movement. This raises a warning to traders as XRP continues to trade at high selling pressure.
Observers have also cited the appearance of substitutes under the theoretical name of XRP 2.0. Though no particular coin has been launched under this branding so far, the word is used to describe the increasing demand in the market for blockchain solutions that are faster, energy-efficient, and highly scalable as a payment mechanism.
Such a change indicates that investors might start redistributing capital to newer-generation tokens capable of providing increased efficiency and institutional coverage.
The resolution of the SEC vs. Ripple case earlier in August removed one of the main barriers to the approval of an XRP-spot ETF. A number of issuers, such as Bitwise and Grayscale, have filed updated S-1s, fueling optimism about approval.
However, the US Securities Exchange Commission (SEC) was at bay until October, citing a need for a uniform framework on how cryptocurrencies can be applied through an exchange-traded product.
With this framework being approved and a 19b-4 filed by large exchanges like Cboe, NASDAQ, and NYSE, there is the likelihood of a dam-breaking of altcoin ETFs, one of which would be XRP.
Analysts indicate that a greenlight could result in significant institutional inflows, which could help XRP price recover. Regulatory ambiguity could persist until that time to influence investor sentiment.
XRP price has now fallen under the $3 threshold and is decreasing by more than 3% under the pressure of sellers. Technical analysts stress the importance of recapturing and staying above the price of $3.03, which has previously acted as a balance between support and resistance. A breakout of this range would leave XRP vulnerable to additional losses, with the possible direction towards $2.72 and $2.50.
On the other hand, catalysts such as spot ETF approvals, adoption of XRP as a Treasury Reserve Asset, or favorable legislative progress could push the token back toward its previous all-time high of $3.66.
In a bullish movement, analysts are optimistic that XRP will rise towards the price range of the $5 level, although only when institutional participation and regulatory understanding are available simultaneously.
Also Read: XRP Price Prediction: Why Investors Are Backing Remittix Over Ripple In The Second Half Of 2025
