XRP Price Nears $3 Thanks to Institutional Investors, But the $700 Million Threat Remains

XRP price is showing signs of recovery after recent volatility, raising hopes among investors that the Token could soon hit the $3 mark.

However, this rally could face challenges from increased selling pressure unless institutional money flows provide the necessary support.

XRP Institutions Show Bullish Signs

Institutional interest in XRP has increased significantly, indicating confidence in its long-term potential. In the first week of the month alone, XRP attracted $14.7 million in inflows, second only to Solana at $16.1 million among altcoins. This shows sustained demand from large investors.

These institutional flows suggest that XRP continues to be XEM as a reliable digital asset. The growing allocations from professional money managers could Vai as a buffer against retail selling pressure. If this trend continues, institutions could help stabilize XRP ’s price trajectory and push it toward $3.

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Despite the institutional optimism, XRP is also facing a surge in exchange balances. Over 235 million XRP, worth over $693 million, have been transferred to exchanges over the past week. This surge represents increased selling activity, reflecting caution among retail and short-term investors.

The sell-off appears to have been driven by both negative overall market sentiment and profit-taking following XRP’s recent surge. While these moves allow traders to secure short-term gains, they could put heavy pressure on the upside.

XRP Price Has Found Support

At the time of writing, XRP is trading at $2.95 while holding above immediate support at $2.94. The price action reflects mixed signals, with institutions favoring growth but sellers maintaining pressure. The balance of these forces will shape XRP's short-term outlook.

If the selling continues, XRP could consolidate above $2.94 or slide down to test support at $2.85. This scenario would delay the move towards the psychological $3 mark, keeping the Token range-bound until sentiment improves.

However, if investors choose to hold instead of sell, XRP could move higher . Turning $2.95 into support could allow the Token to rise to $3.07. A successful break above this resistance level would strengthen the bullish case, invalidate the bearish outlook, and mark a major milestone for XRP.