XRP Tests $1.50 Resistance as Whale Selling Counters Institutional Momentum

XRP is hovering just below a closely watched ‘$1.50’ resistance level, putting the token at a technical inflection point as traders weigh improving U.S. regulatory clarity and fresh institutional signals against persistent sell pressure from large holders.

As of May 16 at 2:58 a.m. UTC, XRP was trading at $1.4356, down 3.65% over the past 24 hours, according to CoinMarketCap data. The token is marginally higher over the past week (+0.38%) but remains down 10.06% over 60 days. Daily spot trading volume totaled roughly $2.42 billion, overwhelmingly concentrated on centralized exchanges, while XRP’s market capitalization stood near $88.76 billion—about 3.37% of the total crypto market—keeping it in fifth place by market value. Circulating supply is about 61.83 billion XRP out of a maximum 100 billion, implying a fully diluted valuation near $143.56 billion at current prices.

Regulatory developments in Washington are emerging as a key narrative driver. A U.S. House committee advanced the ‘Digital Asset Market CLARITY Act’ following bipartisan negotiations, a move markets interpret as another step toward a more defined framework for digital assets. Analysts have argued that a clearer rulebook could further reduce perceived regulatory risk around XRP and broaden its appeal beyond retail speculation. MEXC Research said passage of the CLARITY bill could serve as a bridge for XRP’s shift “from a speculative asset to an institutional allocation candidate,” adding to the gradual easing of legal uncertainty following a 2025 federal court ruling that XRP’s programmatic sales were not securities.

Institutional positioning has also attracted attention. Goldman Sachs ($GS) disclosed an XRP position worth about $153 million, a filing that traders read as another data point supporting the view that some large financial players are exploring blockchain-linked rails as part of ‘next-generation financial infrastructure.’ At the product level, flows tied to XRP spot ETF vehicles have accelerated, with reports of approximately $25 million in net inflows in a single session on May 11 and a roughly 1,200% week-over-week jump in allocations during the first week of May.

On-chain metrics add to the mixed picture. The number of ‘whale’ wallets has climbed to an estimated 332,000—an all-time high by the figures cited—while at least one corporate holder is reported to be maintaining its position despite an unrealized loss approaching $500 million, a stance that has fueled debate over conviction versus balance-sheet constraints.

Yet distribution remains a major headwind near $1.50. FXStreet reported that the top 100 XRP wallets collectively sold about 481 million XRP over the past 30 days—roughly $693 million at recent prices. With those wallets estimated to control around 41% of circulating supply, their selling can materially influence short-term price action and has been cited as a direct obstacle to a clean breakout above the $1.50 supply zone. Some market participants interpret the activity as part of a broader rotation, with inventory moving from early large holders toward ETF-linked and institutionally oriented buyers.

Profit-taking risk is also elevated near resistance. Estimates suggest around 65% of XRP addresses are currently in profit, increasing the likelihood of additional selling if price approaches key levels and momentum weakens.

From a chart perspective, longer-term bulls point to a potential ‘cup-and-handle’ formation spanning roughly eight years, highlighted by investment platform Pluang. If the pattern holds, a decisive move through $1.50 could trigger a larger technical rally as sidelined buyers respond to a perceived regime shift. In the nearer term, XRP has broken out of a ‘descending wedge’ and reclaimed the 20-day and 50-day moving averages, while the relative strength index (RSI) has been rising without entering overbought territory—often interpreted as room for continuation rather than exhaustion.

Market watchers are now focused on what a breakout would look like in practice. U.Today suggested that if XRP clears $1.50 on strong volume on a daily close and then holds it on a retest, the next upside area to watch could be around $1.70. On the downside, immediate support is clustered around $1.45, with broader support discussed in the $1.30–$1.35 range.

Price behavior this year underscores the importance of that band: XRP has spent roughly 60% of 2026 trading within the $1.30–$1.50 range, showing relative resilience even as macro uncertainty has weighed on crypto markets, including periods when Bitcoin (BTC) traded below $80,000.

Beyond technicals, proponents continue to frame XRP’s longer-term case around ‘utility’—particularly its role as plumbing for cross-border transfers and settlement flows—rather than purely momentum-driven appreciation. In that view, the combination of regulatory clarity and institutional comfort is critical for expanding real-world usage narratives. For now, XRP sits between two forces: improving policy tailwinds and signs of institutional engagement on one side, and heavy supply near $1.50 alongside whale-led distribution on the other. The market is treating a confirmed break above that level as a potential signal that ‘institutional demand’ is becoming dominant.