The XRP price has been on a downward spiral, dropping below the crucial $2 mark, and recent insights from the on-chain analytics platform CryptoQuant shed light on this troubling trend. Despite hopes surrounding the approval of an XRP ETF, selling pressure has intensified rather than diminished. Analyst PelinayPA from CryptoQuant explains that significant selling activity is primarily driven by whales who hold between $100,000 and 1 million XRP, as well as those who possess over a million tokens. These large holders contribute substantially to inflows into crypto exchanges like Binance.

The report highlights that these whale transactions often indicate their intent to offload XRP, creating a significant selling pressure on the asset. Each time there's a spike in inflow, XRP’s price tends to form lower highs and lower lows, a clear indication that supply is outpacing demand. PelinayPA points out that the market currently lacks strong new spot buyers, which compounds the problem. Even though whales aren't aggressively dumping their holdings, the continuous influx of available XRP keeps pushing prices downward.

As the situation unfolds, PelinayPA has identified critical support levels to monitor. The first major support zone is between $1.82 and $1.87, a range where the price previously stabilized and small buyers emerged. However, if large outflows persist, XRP could potentially crash to the $1.50 to $1.66 range. The current chart signals no immediate relief for the altcoin, given the existing selling pressure.

Interestingly, the report discusses the impact of ETF narratives. The XRP ETF was anticipated to generate institutional demand, driving prices higher through spot buying. However, the reality has been starkly different, with elevated XRP inflows to Binance instead. According to PelinayPA, whales were quick to act on ETF approval expectations, transferring XRP accumulated in anticipation of the ETF to exchanges as sell-side liquidity. Essentially, these large holders capitalized on the ETF narrative, selling to retail investors while maintaining significant selling pressure each time XRP nears the $1.95 level.

PelinayPA emphasizes that expecting a bullish reversal before exchange inflows taper off would be unrealistic. Yet, it’s worth noting that the XRP ETFs have seen some success, amassing over $1 billion in net assets within just a month of their launch. As of now, the XRP price hovers around $1.90, reflecting nearly a 4% increase in the last 24 hours according to CoinMarketCap. The market remains cautious as traders and investors await clearer signals amidst this ongoing turmoil.