Institutional Moves and $1B Liquidations Shake XRP: Could This Be a Strategic Re-Accumulation Phase?

XRP’s August 2025 market performance has been a study in extremes. The resolution of the long-running SEC lawsuit on August 7 sparked a 4% surge as institutional buyers stepped in, pushing prices from $3.15 to $3.25.

Volumes spiked to 140 million tokens, confirming resistance at $3.30. However, profit-taking and wash trading concerns quickly pulled prices back, showing a tug-of-war between bullish momentum and short-term uncertainty.

By mid-August, XRP attempted another breakout at $3.27 with over 217 million tokens traded, but the inability to hold above $3.30 kept the market cautious.

Technicals show a descending triangle, typically bearish, but with RSI above 50 and MACD positive, a breakout could still favor the bulls. Key levels remain $3.00 for support and $3.40 as the gateway to retesting the all-time high of $3.66.

XRP Dilemma: Institutional Strategy vs. Retail Volatility

Institutions appear to be quietly positioning. XRP-based investment products saw $37.7 million in Q1 inflows, while open interest in XRP futures has climbed past $3 billion. Many large players are using TWAP and VWAP strategies to accumulate without triggering sharp price jumps.

However, Coinbase’s recent 57% reduction in XRP holdings, from 52 wallets to 35, has fueled speculation about waning institutional confidence. While skeptics view it as a bearish signal, others argue it’s a portfolio rebalancing move in preparation for regulatory shifts.

Stablecoin adoption on the XRP Ledger has also surged 46%, thanks to Ripple’s RLUSD launch, supporting the token’s utility despite reduced speculative buzz.

Risks, Rewards, and the Re-Accumulation Case

Concerns over wash trading, sparked by validator reports of repetitive large transfers between exchange wallets, have weighed on sentiment, triggering a 6% sell-off and $59.3 million in liquidations. Yet, for disciplined investors, such volatility can signal accumulation zones.

XRP's price trends to the upside, but records small losses, on the daily chart. Source: XRPUSD on Tradingview 

Strategic entry points include a sustained breakout above $3.30, which would validate institutional re-entry, or a bounce from $3.00 support for a short-term rebound. With derivatives activity rising and XRP’s cross-border payment utility growing, the token remains a high-risk, high-reward play.

For now, XRP sits at a crossroads, caught between inflation-driven macro headwinds and expanding real-world adoption. If institutional flows hold and regulatory clarity continues, the current instability may be a buying sign.

Cover image from ChatGPT, XRPUSD chart from Tradingview