Introduction BitMorpho Daily News & Fundamentals: XRP Report - Thursday, December 4, 2025 Good morning, crypto faithful. As we kick off December 4th, the focus across global markets and by direct extension, for XRP remains squarely fixed on the Federal Reserve's impending monetary policy decision next week. The general sentiment is one of high anticipation and underlying macroeconomic pressure, which has kept the broader risk-on environment volatile. For XRP, on-chain metrics from early December suggest a state of crucial consolidation. While some analysts point to historical bullish divergences in whale and shark wallet behavior, indicating a potential redistribution phase, the immediate price action shows lingering technical weakness, trading below key resistance levels that has triggered short-term profit-taking. Furthermore, derivatives positioning shows futures open interest has significantly retraced since October, signaling leveraged traders are de-risking amid the macro uncertainty. Network activity, while noted for expansion in payment volumes on the XRP Ledger, has yet to translate into sufficient daily active address growth to strongly support a price rebound. In the wider market, expectations for a December Fed rate cut have solidified dramatically, with market probabilities hovering near 80-89% following recent dovish comments and cooler-than-expected private payroll data released yesterday. This expectation is underpinned by softening labor market figures, such as the reported private sector job shedding in November, which pressures the FOMC toward an accommodative stance. However, underlying geopolitical tensions, including remarks on tariffs, and mixed economic readings like stable, yet cautious, ISM Services PMI data keep the market on edge as investors weigh persistent inflation against slowing growth. For XRP holders, this macro tug-of-war defines the current landscape: subdued speculative demand juxtaposed against fundamental network utilization. Keep a close eye on the coming inflation and labor reports for definitive signals ahead of the next FOMC meeting. News Analysis XRP: Navigating Whale Distribution Amid Regulatory Clarity and Ecosystem Expansion The world of XRP is currently presenting a complex picture, caught between significant positive developments in institutional adoption and immediate on-chain selling pressure. While the broader market is dominated by anticipation around the Federal Reserve's policy path, XRP-specific metrics reveal a battle between long-term structural growth and short-term market nervousness. Regulatory Wins Bolster Institutional Confidence The most compelling narrative supporting XRP's long-term outlook remains the continued progress on the regulatory front, particularly in key financial hubs. Ripple has secured an expanded Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS). This is a major feather in the cap for the company, allowing Ripple Markets APAC Pte. Ltd. to scale its regulated, blockchain-based payment services, including the use of XRP and its stablecoin, RLUSD, for settlement with banks, fintechs, and crypto firms in the region. This regulatory clarity in a major Asian financial center reinforces Ripple’s "regulation-first" strategy and positions the company to drive adoption in Asia-Pacific. Furthermore, the resolution of the long-standing legal battle with the U.S. SEC earlier this year has neutralized a major overhang, which has helped enable nine asset managers to file for spot XRP Exchange-Traded Fund (ETF) applications. On-Chain Divergence: Distribution vs. Consolidation On-chain data presents a mixed signal that mirrors the current price consolidation. The context suggests we are witnessing significant redistribution at the whale level. Reports indicate that multiple XRP whales have recently offloaded billions of tokens, leading to a sharp price dip and absorbing technical support levels. Data from Santiment suggests whale balances saw one of the steepest single-week reductions this year. This selling pressure has contributed to the market's current weakness, with futures open interest significantly retracing since October, as leveraged traders de-risk. However, this selling does not paint the full picture. Concurrently, other analysis suggests that while the *number* of wallets holding 100 million+ XRP has decreased, the total XRP balance held by the *remaining* large wallets has surged to a seven-year high, signaling strong consolidation among the most powerful holders. This indicates that some large holders are absorbing supply from others, suggesting conviction rather than capitulation. Ecosystem Growth & Network Utilization Despite the on-chain selling, the underlying XRP Ledger (XRPL) continues to show infrastructural development and expanding utility. Analysts point to a surge of over 40,000 AccountSet transactions, which are used for configuring accounts a pattern interpreted as large-scale infrastructure setup, potentially for institutional use. This occurs as the number of accounts holding at least the minimum balance surpassed 7 million, and daily interacting addresses skyrocketed to roughly 295,000 over a recent week seven times the prior average. Furthermore, institutional backing for the ecosystem continues, evidenced by Ripple’s participation in the funding round for tokenized U.S. Treasury bill platform OpenEden, signaling integration into the growing Real-World Asset (RWA) sector. Ripple’s existing utility leveraging XRP for fast, low-cost cross-border payments with over 300 partners remains the asset's core value proposition. Community Sentiment & Price Levels The immediate community sentiment appears cautious, aligning with the technical picture of trading below key resistance. While the overall ecosystem narrative is bullish due to regulatory clarity and institutional integration, the recent whale distribution has triggered short-term profit-taking and dampened speculative demand. The key technical focal point remains the $2.00 psychological support level, which has been repeatedly tested and defended, providing a foundation against the recent volatility. Outlook Conclusion: A Tug-of-War Between Structural Gains and Whale Distribution Today's developments paint a fundamentally mixed picture for XRP, characterized by a tug-of-war between significant foundational achievements and immediate on-chain headwinds. The expansion of Ripple’s Major Payment Institution license by the Monetary Authority of Singapore (MAS) is a substantial regulatory victory, bolstering institutional confidence and strategically positioning Ripple within the Asia-Pacific market for scaling its payment solutions, including the use of XRP. This long-term structural growth, coupled with the momentum from earlier US regulatory clarity, provides a strong underlying bullish case. However, this optimism is currently being overshadowed by pronounced short-term selling pressure. The on-chain data highlights a critical phase of whale distribution, where large holders are offloading billions of tokens, directly impacting immediate price stability and testing key support levels. For the next 24 to 48 hours, investors must closely monitor the interplay between these forces. The primary focus should be on whether the market can absorb the current whale-led selling without a significant break below established technical floors. Any sustained consolidation *above* these support levels, ideally with decreased selling volume, could signal that the distribution phase is concluding, allowing the fundamental bullish catalysts to reassert control. Conversely, a decisive drop below critical support could see further short-term downside as the market digests this redistribution event. *** *Disclaimer: This report is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.*