XRP Whales Accumulate as US ETF Investors Retreat Near $1 Support

XRP (XRP) has fallen 19.57% in the last seven days to $1.05, data from BeInCrypto Markets indicates. At the same time, addresses holding at least 10,000 tokens — known as shark wallets — continue to increase even as Binance traders reduce their leveraged positions.

The token is trading just above $1, a level that Santiment describes as the crucial support to hold. However, investors in US spot XRP exchange-traded funds (ETFs) have begun withdrawing capital.

XRP Shark Wallets Grow as US Funds Head for the Exit

According to Santiment data, roughly 343,500 wallets currently hold a minimum of 10,000 XRP. That figure has risen by 16,815, equivalent to 5.15%, since February 9.

The analytics firm observed that this group continued to expand while XRP lost about 30% over the past seven weeks. It views this divergence as a signal that some well-resourced traders are buying during the downturn. Earlier this month, XRP millionaire wallets also reached a yearly peak.

US spot XRP ETFs are moving in the opposite direction. On November 9, these funds recorded net outflows of $10.42 million, per SoSoValue data. That represented their largest single-day withdrawal since March 9. A further $7.62 million exited on November 10.

Binance Traders Pull Back From Borrowed Bets

Leverage in XRP is also declining on Binance. The token's Estimated Leverage Ratio there has dropped to around 0.14, a three-month low, according to analyst Arab Chain.

“…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 also shrunk. Binance held $189 million in XRP open interest on November 11, Amr Taha reported. That level is near its August 2 reading of $182 million.

Arab Chain said that lower leverage can diminish the likelihood of widespread liquidations. However, the analyst noted that a reduced ratio does not eliminate the risk. Price movements and liquidity conditions still influence how probable liquidations are.

What Happens to XRP Price if $1 Gives Way?

Santiment considers $1 the level XRP must defend. If wallet growth continues and Bitcoin (BTC) stabilizes, the firm sees XRP recovering to $1.10 to $1.15.

A drop below $1, combined with declining wallet growth, would probably trigger a short selloff, Santiment warned. It expects the resulting retail panic to set the stage for a rebound. Retail sentiment is already negative, with bearish comments outnumbering bullish ones by roughly 2 to 1.

With leverage so low, spot buyers may have more influence on XRP's next move. Shark wallets and US ETF flows are now pulling in opposite directions. The trend that persists could determine whether $1 holds.