XRP Price Drops Despite Unchanged Legal Status as Grayscale Allocates 26.11%, 85 Whale Wallets Preceded Rally

• XRP price fell over 8% to $1.30 even though its existing regulatory treatment has not changed
• Grayscale gave XRP a 26.11% weighting in its Next Gen model, making it the portfolio’s second-largest allocation behind Ether
• Santiment found 85 new wallets holding at least 1 million XRP appeared just two days before August’s 67% rally

XRP’s price has taken a sharp turn lower, but the backdrop around the token is more complicated than the chart suggests. XRP is trading near $1.30 after a heavy 24-hour selloff, even as its regulatory treatment remains intact, and Grayscale XRP exposure has taken a surprisingly large place in a new adviser portfolio. Large-wallet activity is also worth watching after a similar build-up preceded XRP’s August rally.

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XRP Price Falls 8% While Legal Status Holds

XRP was trading around $1.29 to $1.30 at the time of writing, down roughly 8% over 24 hours and close to 10% over the past week. It should be noted that the asset has surged by 30% during the past month. Trading volume was also rising, at nearly $5.9 billion.

Part of XRP’s downfall came during a notable crypto selloff after the US Senate failed to advance the CLARITY Act. The procedural vote fell short of the 60 votes needed, with Bitcoin and several crypto-linked stocks also moving lower afterward. Reports revealed that the vote ended 50-49.

For XRP, though, the failed vote did not change its existing regulatory treatment. SEC guidance issued in March listed XRP among examples of digital commodities, along with assets like Bitcoin and Ether.

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Grayscale XRP Weight Reaches 26.11%

There is also an interesting contrast on the investment side. Grayscale’s Digital Assets Next Gen model allocates 26.11% to XRP, making it the second-largest position in the portfolio. Ether carries 42.34%, while Solana sits at 21.09%. This seven-fund model does not include Bitcoin.

It is worth stressing that this is a model allocation for advisers, not proof that Grayscale suddenly bought that percentage of XRP.

Amidst this, the XRP Ledger data is interesting for a different reason. Santiment says 85 new wallets holding at least 1 million XRP appeared just two days before the token’s 67% rally between August 17 and 21.

History does not make another rally automatic. But it does give traders a useful group to watch while the market settles after this week’s drop.

XRP’s price prediction remains a bit messy right now. Price momentum has clearly weakened, but Grayscale’s latest move, XRP’s unchanged regulatory treatment, and the behavior of large holders make the setup less bearish than the 24-hour chart alone suggests.

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