Early XRP Trading Investors Are Keeping The Price Down, Here’s How They’re Doing It
XRP’s price remains flat despite steady activity around the asset, and recent comments help explain the disconnect. According to Jake Claver, CEO of Digital Ascension Groupthe meaning is more than that Ripple Release issuance or trading behavior, instead pointing to the structural factors that influence how the XRP supply reaches the market.
How XRP Investors Sell Without Making a Market
Claver he explained in a recent post on X that large sales of XRP occur primarily through institutional channels such as over-the-counter (OTC) trading and black pools which keep the work out of public view, rather than in public discussions. He specifically pointed to platforms like FalconX and Kraken’s dark pool infrastructure. These positions are designed for institutions, hedge funds, and early stage investors who want to liquidate large positions without advertising their intentions in open order books.
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This is important because social exchanges are very sensitive for large sales orders. When a large sale occurs in a trade, it often causes the price to drop quickly as other sellers react. OTC desks work differently. They match buyers and sellers privately, allowing XRP to change hands without an immediate impact on virtual market prices. As a result, significant amounts of XRP can be traded while the chart appears to be stable.
For early investors who have accumulated XRP at very low prices over the years, this method is very successful. It allows them to gradually exit or rebalance positions while protecting the quality of the execution. In the broader market, however, it creates a disconnect. The demand may be there, but as long as a continuous supply is released through private channels, price increases remain limited. This explains why XRP can struggle to climb higher even in moments of positive emotions or powerful narratives related to the network.
ETF Demand Releases Pool of Mutual Funds
An important extension of Claver’s point did not appear in the comments below his original post. A reader asked for a “best estimate” of where OTC desks might end up. He answered that supply is shrinking every day, as ETFs consume available funds.
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This exchange is important for understanding the big picture. ETFs rarely buy XRP on public exchanges in a way that distorts the price. Instead, they get liquidity through OTC desks, the same channels that early stage investors use to trade. This means ETFs underperform XRP that would always be available for silent distribution. Over time, this changes the structure of the market. As ETFs and other institutional products continue draw down the OTC listearly investors will have fewer opportunities to sell large positions without affecting the public markets. When that happens, selling activity becomes more visible, and price discovery returns to trading.
Until OTC supply tightens meaningfully, the price of XRP may remain limited despite continued demand. The main takeaway is straightforward: the current price pressure is not a lack of interest in XRP, but the result of how and where early investors choose to sell.
The featured image was created with Dall.E, a chart from Tradingview.com
