XRP Sharks Buy the Dip While US Funds Sell. Who Wins the Fight for $1?

XRP (XRP) has dropped 19.57% over the past week to $1.05, according to BeInCrypto Markets. Yet XRP shark wallets, which hold at least 10,000 tokens, keep multiplying as Binance traders cut leverage.

The token now sits just above $1, a level Santiment calls the key support to defend. US spot XRP exchange-traded fund (ETF) investors, however, have started pulling money out.

Follow us on X to get the latest news as it happens

XRP Shark Wallets Grow as US Funds Head for the Exit

About 343,500 wallets now hold at least 10,000 XRP, Santiment data shows. That count has climbed by 16,815, or 5.15%, since February 9.

The analytics firm noted the cohort kept expanding while XRP lost roughly 30% over the past 7 weeks. It sees the gap as a sign that some well-funded traders are buying into the fear. XRP millionaire wallets also hit a yearly high earlier this month.

US spot XRP ETFs are moving the other way. The funds posted $10.42 million in net outflows on November 9, according to SoSoValue. That marked their largest single-day outflow since March 9. Another $7.62 million left on November 10.

Binance Traders Pull Back From Borrowed Bets

XRP leverage is also coming down on Binance. The token’s Estimated Leverage Ratio there has fallen to about 0.14, a 3-month low, analyst Arab Chain noted.

“…traders may be lowering their risk exposure and reducing the size of positions financed through borrowed capital relative to available reserves. This could be linked to the closure of existing positions or a diminished appetite for using leverage amid the price pressures currently affecting XRP,” the analyst explained.

Open interest has thinned as well. Binance held $189 million in XRP open interest on November 11, Amr Taha reported. That is close to its August 2 reading of $182 million.

Arab Chain said lower leverage can reduce the chance of widespread liquidations. However, the analyst noted that a lower ratio does not mean the risk is gone. Price moves and liquidity levels still shape how likely liquidations are.

What Happens to XRP Price if $1 Gives Way?

Santiment treats $1 as the level XRP must defend. If wallet growth holds and Bitcoin (BTC) steadies, the firm sees XRP reclaiming $1.10 to $1.15.

A break below $1, paired with fading wallet growth, would likely spark a brief selloff, Santiment warned. It expects the retail panic that follows to set up a rebound. Retail mood already leans negative, with bearish comments outnumbering bullish ones by about 2 to 1.

With leverage this thin, spot buyers may carry more weight in XRP’s next move. Shark wallets and US ETF flows now pull in opposite directions. The side that keeps going could decide whether $1 holds. 

Subscribe to our YouTube channel to watch leaders and journalists provide expert insights