3 Reasons XRP Rallies Stall — What Must Change For A Sustained Recovery

After failing to push past the critical short‑term resistance at $1.60 last week, XRP has slid about 8%, settling back into the $1.35–$1.40 trading range. Market analyst Sam Daodu says three connected problems explain why recent rallies have fizzled and what must change for a sustainable recovery.

Second, large holders have been steadily taking profits since XRP hit $3.65 in July 2025. Daodu estimates roughly $6 billion in XRP has been sold by whales since that peak, and substantial volumes continue to flow onto exchanges.

The expert identified that many of these whales originally bought below $0.65, so they are willing to sell into rallies to lock in gains, asserting that selling pressure keeps rallies short‑ lived.

Because that average is nearly the center of XRP’s recent trading band, holders who have been losing money sell when price approaches breakeven, using $1.45 as a take‑profit level. 

Daodu adds that even if XRP clears $1.45, further layers of selling are likely: positions across the $1.40–$3.65 range contain clusters of holders looking to return to breakeven or better, meaning upward moves tend to meet fresh supply.

At the current inflow pace—roughly $1.9 million per week—ETFs would only add about $100 million by year‑end, a level Daodu argues is insufficient to meaningfully soak up supply. 

If the bill becomes law and formally cements XRP’s status as a commodity, Daodu argues, it would reduce regulatory uncertainty and could unlock broader institutional adoption. 

In short, Daodu’s view is that XRP needs multiple things to shift at once: a change in capital flows away from Bitcoin, less selling from large holders, and materially larger ETF inflows—or a regulatory development that brings institutions on board. 

Until several of those factors move together, the analyst says, XRP rallies are likely to remain short‑lived and the token stuck near its recent trading band.

Featured image from OpenArt, chart from TradingView.com