XRP has declined sharply to a multi-month low of $1.03, shedding 17% of its value over seven days and approaching the key $1.00 support level. The sell-off coincides with a dramatic collapse in demand for XRP exchange-traded funds, which saw $0.00 in net flows on four of five days in the previous business week. Outflows resumed at the start of the current week, with $10.42 million in net outflows on Monday and $7.62 million on Tuesday.
Selling pressure on major exchanges has intensified, with data showing aggressive market selling outweighing buying activity. Retail sentiment has deteriorated significantly, with bullish-to-bearish comment ratios reaching 0.49 to 1, substantially worse than ratios for Bitcoin and Ethereum.
Development Progress on Lending Protocol
On the development front, Ripple's proposed XRP Ledger lending protocol has gained additional validator support, rising from 19 votes to 22 out of 35 validators as of this week. The amendment still requires support from 29 validators for two consecutive weeks before activation. The related SingleAssetVault amendment currently has 23 validator votes.
The lending system is designed to enable fixed-term, uncollateralized lending for institutions such as banks and payment companies, with underwriting and risk management handled off-chain.
Testnet Reset Scheduled
Developers will reset the XRPL Testnet and Devnet on November 25. The reset will delete all existing accounts, balances, transactions, tokens, automated market makers, escrows, and other on-chain data. The primary objective is to address infrastructure problems and improve full-history server stability. The XRPL mainnet will remain unaffected, though developers using the testing environments will need to recreate their accounts and obtain new test XRP.
Former CTO Comments Spark Debate
David Schwartz, the former Ripple CTO and key figure behind the XRP Ledger, recently disclosed that he has not purchased XRP for years and has reduced his holdings from roughly 26 million tokens to 3 million. Schwartz attributed his decisions to personal risk aversion rather than concerns about XRP's future prospects.
His comments sparked criticism from some XRP holders questioning why one of XRPL's architects would dramatically reduce his exposure despite the growing ecosystem. Schwartz explained that his personal financial risk tolerance, rather than predictions of failure, drove his portfolio decisions.
Mixed Market Signals
Despite the bearish price action and sentiment, some data points suggest potential support at current levels. XRP whales accumulated over 65 million tokens in four days, while large Bitcoin and Ethereum holders were selling their respective assets. Earlier during the pullback, another whale cohort purchased 16.5 million XRP as prices fell from $1.34 to $1.15.
Analyst ChartNerd has suggested the current region may represent a potential short-term bottoming zone, though his long-term analysis using historical cycle patterns indicates the next major peak may not arrive until 2029, based on an average gap of roughly 1,400 to 1,440 days between cycle tops.
