Just a year ago, XRP sat at around $0.60. Those who held the token back then and did not sell during the rally are still sitting on returns exceeding 250%. Hence, they may opt to take some of those profits off the table as a precaution.
Meanwhile, late buyers could also be cashing out. Even if they bought at $2, they are sitting on some small profits but may be expecting further downside ahead.
Is Wall Street Buying Into the Panic?
At a point when a flood of altcoin-linked ETFs is about to hit the market, this seems like a contrarian signal. Institutional demand may rise as a result of this trend.
Hence, while weak-handed players are selling at these low prices, institutional investors may be the ones picking up XRP at a discount compared to where the token was a few months ago.
The recently launched Canary Capital XRP spot ETF ($XRPC) has already attracted $277 million in assets in just a few days, reflecting that Wall Street’s interest in the token is growing.
Combined with the REX-Osprey XRP ETF (XRPR), total assets on spot XRP ETFs are nearing $400 million. Meanwhile, CoinShares, Bitwise, and 21Shares are waiting to get listed soon.
These ETF launches could cushion the latest selling spree, and late buyers’ capitulation sets the stage for a massive entry of fresh capital that could propel XRP to new heights.
Can XRP Hit $4 This Year?
In the past 24 hours, XRP has lost 2% but trading volumes have retreated. This may indicate that the selling pressure is decelerating already.