Dark Pools: DAG MD Reveals Only Reason XRP Has Failed to Surge
April 29, 2025
XRP
Digital Ascension Group’s Managing Director suggests that the XRP price remains stagnant due to an alternative accumulation venue by large institutions.
Despite a string of bullish headlines and progress within the Ripple and XRP ecosystems, the XRP price has failed to reflect the momentum many investors anticipated. Since February 2025, XRP has remained in a consolidation phase around the $2 mark, showing resilience but lacking a decisive breakout.
XRP Price Remains Stagnant
Interestingly, according to Jake Claver, Managing Director at Digital Ascension Group (DAG), the main reason behind XRP’s price stagnation is not due to market fundamentals or investor disinterest, but the growing influence of dark pools.
For context, XRP kicked off the year with a strong bullish push, rallying to a high of $3.3 in January. However, following this peak, the asset experienced a sharp correction and has since struggled to regain upward momentum.
Although intermittent rallies have surfaced, such as a 34% surge to $3 on March 2, an 11% uptick on March 19, and a 14% gain on April 9, each movement has failed to establish a lasting breakout above major resistance zones.
Most recently, after a brief run toward $2.36 on Monday, April 28, XRP slid back to $2.2. With this slight pullback, it has continued the pattern of tight range-bound trading between $2 and $2.5.
Possible Reason: Institutions Prioritizing Dark Pools
In a recent X thread, Claver said the answer is the private trading venues known as dark pools. He describes these platforms as discreet environments where large-scale transactions can take place without causing major price disruptions on public exchanges.
For instance, if an institutional investor wants to purchase $500 million worth of XRP, executing that order publicly would create massive buying pressure and trigger price spikes, potentially leading to FOMO-driven retail buying.
On the other hand, dark pools allow such transactions to occur quietly and efficiently, shielding them from market visibility until after execution.
Claver stressed that while this system benefits large players, it creates a misleading picture for everyday traders. The XRP price remains flat, despite heavy accumulation behind the scenes.
XRP Price Could Explode from the Pressure
This hidden accumulation phase leads to tightening supply on public markets, a condition that could culminate in explosive price action once the institutions exhaust the available liquidity.
Speaking further, he explained that institutions, including hedge funds, family offices, and even countries, are increasingly turning to dark pools to build substantial positions without revealing their strategies.
“Who’s using them? Hedge funds, family offices, even nation states. They want to load up without tipping off retail and sending prices soaring too soon.”
– Jake Claver, QFOP (@beyond_broke) April 28, 2025
According to him, trading platforms like Coinbase and Kraken have already introduced dark pool services for high-volume clients. In addition, it appears decentralized alternatives are emerging rapidly.
Notably, Claver pointed out that retail investors often misinterpret the current market lull as a lack of demand. In reality, institutions are quietly removing supply from the market. In turn, this prepares the foundation for a potential dramatic repricing event.
Essentially, when dark pool reserves dry up and buyers are forced to turn to public exchanges, the limited available supply could lead to sharp price gaps and rapid appreciation.
He likened the dark pool mechanism to a pressure cooker, which slowly builds up force until it eventually explodes. For XRP specifically, Claver suggested that a combination of regulatory clarity, institutional utility, and reduced supply could ignite a parabolic surge, potentially driving the XRP price 2x, 3x, or even 5x higher in a very short timeframe.
Positive XRP and Ripple Developments
Interestingly, these positive developments have dominated the scene in recent times. For one, Ripple’s $1.25 billion acquisition of prime brokerage firm Hidden Road indicated an important expansion into institutional finance.
Meanwhile, legal clarity appears closer than ever, with Ripple and the SEC recently agreeing to drop their respective appeals, suggesting a near-term resolution to their long-standing litigation.
Furthermore, institutional interest in XRP has gained steam, as evidenced by the launch of a spot XRP ETF in Brazil and a leveraged version in the U.S. Notably, despite these developments, XRP currently trades at $2.27, down 0.26% in the past 24 hours.
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