Despite strong institutional demand and nearly a billion dollars injected into XRP ETFs, the token fell below the symbolic threshold of $2. While incoming flows are increasing, the spot market remains under pressure. This divergence between fundamentals and price is of concern. Why is XRP falling while large investors are buying? Between a bullish signal and technical fragility, the market seems divided. Such a situation makes it difficult to read future trends.
In brief
- XRP falls below the critical $2 threshold despite a massive influx of capital into spot ETFs.
- XRP ETFs record 20 consecutive days of positive flows, reaching almost $1 billion.
- Despite this institutional enthusiasm, the price of XRP continues to fall, losing more than 11% in ten days.
- The market seems divided between a long-term bullish view and a worrying short-term technical correction.
An accelerating institutional demand
Over the past three weeks, XRP-backed spot ETFs have recorded an uninterrupted streak of 20 consecutive days of inflows, totaling $990.9 million.
The Franklin On the same date, Bitwise XRP ETF (XRP) and Canary XRP ETF (XRPC) also saw positive inflows, while products from Grayscale (GXRP) and 21Shares (TOXR) remained flat.
“Institutional demand for XRP is rapidly gaining momentum”commented analyst Bitcoinsensus on X, revealing the performance gap with other traditional crypto products.
This institutional dynamism in fact contrasts sharply with the performance of other crypto ETFs at the same time:
- Spot Bitcoin ETFs recorded $49 million in inflows on the same day, five times less than XRP ETFs in cumulative value;
- Ethereum spot ETFs, meanwhile, saw $19.4 million in outflows, reducing their cumulative flows to $13.1 billion;
- Total XRP ETF assets under management now exceed $1.2 billion, confirming growing interest from institutional investors;
- This strong signal of accumulation fuels expectations of a long-term bullish scenario for XRP, with some analysts citing a target of $10 by 2026.
A price that collapses despite everything: the breakdown of technical supports
On the spot market, the price of XRP has lost more than 11% in ten days, slipping below $2 for the second time since November 21.
Last Monday, the XRP/USDT pair began a new bearish phase, testing a daily liquidity block around $1.93. This level has limited support. The URPD (UTXO Realized Price Distribution) indicator, which maps the price levels at which tokens were acquired, reveals a low density of buyers below $1.90, reducing the likelihood of a spontaneous rebound in the short term.
In the event of a breakdown of this zone, eyes will turn to technical support at $1.78, where 1.85 billion tokens have been accumulated. If this barrier were to give way, analysts believe that XRP could head towards a critical zone between $1.61 and $1.40, the latter coinciding with the 200-week exponential moving average, often considered a major line of defense.
The Relative Strength Index (RSI), in sharp decline, is currently showing its lowest level since July 2024, a clear signal of increasing selling pressure. The technical elements converge towards the hypothesis of a prolonged decline, independently of the dynamics observed on the crypto ETF side.
The market is struggling to react to signals from ETFs, leaving doubt about the ability of XRP to regain its past momentum. For the record, XRP reached an all-time high at $3.65, far from its current levels. It remains to be seen whether institutional accumulation will eventually reverse the trend.
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