The price of XRP has been under pressure for several weeks. Many attempts to bounce back have been ineffective. By the end of 2025, the altcoin continues to face bearish dominance, closing the year slightly in the red.
Weak demand in the spot market and caution from retail investors are affecting price behavior. However, institutions are showing interest, which is becoming the main stabilizing force for XRP. As a result, we are not seeing significant declines despite ongoing selling pressure.
Ripple's token is a favorite among institutions
Institutional investors are the most consistent supporters of XRP throughout 2025. According to data from CoinShares, the Ripple token received $70 million in inflows in the week ending December 27. This brought the inflows for the month to $424 million. This highlights the continuous capital allocation even during downturns.
It is worth adding that during the same period, the price of the altcoin performed better than larger cryptocurrencies. Bitcoin recorded outflows of $25 million, while Ethereum saw outflows of $241 million.
Annually, the altcoin attracted $3.3 billion in inflows. This shows persistent confidence from institutions despite volatility and legal ambiguities across the broader cryptocurrency market.
XRP ETFs show strength.
Institutional support extends beyond traditional exchange products after the launch of XRP ETFs earlier this year. Since the debut, XRP ETFs have not recorded a single day of net outflows. Only one session closed at zero, showing an extraordinary consistency of interest.
In a conversation with BeInCrypto, Ray Youssef, CEO of the NoOnes app, emphasized that institutional investors consistently implement orderly, long-term strategies.
"December accumulations of XRP were a strategic positioning setup to take advantage of the momentum around the ETF. Just like in previous cycles of launching ETFs for Bitcoin and Ethereum, institutions often accumulate assets before their prices reflect these changes."
He also added that the native Ripple token is currently viewed as a high-volatility asset with attractive value. Youssef said:
"[This] results from the increasing participation of institutional investors in trading the asset. As a result, XRP is increasingly entering the mainstream. Despite the weak price, investors still consider current levels a good entry point to benefit later when the price starts reflecting the ETF effect."
Coin holders who refuse to hold.
Long-term holders remain a key group ahead of 2026. They typically stabilize the market during corrections. Over the last 12 months, these investors have alternately accumulated and dispersed XRP, showing uncertainty regarding the medium-term prospects of the coin.
In Q4 2025, sales are dominated by long-term investors. This trend suggests a decline in confidence among those who typically hold assets during volatility. If the lack of faith persists into 2026, XRP faces greater risk of declines. Long-term distribution by investors often precedes longer consolidations or deeper corrections.
The price of XRP may gently start 2026.
At the time of writing, the altcoin was priced at around $1.87 after a 38% drop in Q4 2025. Since the beginning of the year, the altcoin has lost 9.7% relative to the opening price. In December, there was no improvement in the situation, further emphasizing the bearish advantage and a weak year-end close.
Nevertheless, the year 2026 may take its own course. Ray Youssef assessed that January, and possibly the entire first quarter, will remain rather stagnant for XRP. Youssef noted:
"In January and Q1 2026, XRP is likely to consolidate and trade within the range of $2–$2.50, unless a strong macroeconomic impulse arises. The market has yet to cope with ongoing volatility and geopolitical disruptions caused by trade tensions. Frequent episodes of deleveraging and risk avoidance have led investors to hesitate before taking directional positions until all adversities completely subside."
The main goal remains to recover recent losses. Maintaining above $3.00 is necessary to restore the bullish structure and open the path to the record of $3.66.
Bearish scenarios remain significant if selling pressure increases. Furthermore, continued consolidation and a drop in demand could lower the price of XRP. A decisive break of support at $1.79 would likely reveal the zone of $1.50. Such a move would invalidate the thesis of a neutral-bullish stance and confirm the dominance of declines.
However, seasonality introduces another element of caution. Youssef added:
"XRP performed worse in December due to the overall structural weakness of the market. A decline in liquidity, low risk appetite, and the AI bubble triggered a sell-off that spread to high-risk assets and the entire digital asset market and limited expected seasonal support. The cryptocurrency market experienced one of its worst quarters in nearly 7 years."
Historical performance of XRP over the last 12 years shows that in January, the average gain is 3%. However, the median is a decline of 7.8%, suggesting frequent poorer outcomes.
Therefore, if market sentiment and investor behavior do not change significantly, the price forecast for the Ripple token indicates that the rate may struggle in the early months of 2026 before a clearer trend takes shape.
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