XRP Falls to $2.20 Amid ETF Weakness, $4B Whale Sales Signal Risk
XRP fell below $2.20 for the second time in a row, as enthusiasm for Spot ETFs is waning fast now. Early inflows into XRP-spot ETFs...
Quick overview
- XRP has fallen below $2.20 for the second consecutive time, with weak inflows into XRP-spot ETFs compared to Bitcoin-focused products.
- Whales have offloaded $4 billion worth of XRP in November, contributing to a bearish market sentiment.
- Despite the grim short-term outlook, potential medium-term catalysts like ETF inflows and regulatory decisions could provide some hope for XRP.
- Traders should monitor the $1.82 support level while remaining cautious about the market's volatility.
XRP fell below $2.20 for the second time in a row, as enthusiasm for Spot ETFs is waning fast now. Early inflows into XRP-spot ETFs were way down on those for Bitcoin-focused products – a gap that’s been significant to say the least. Technical indicators are still looking pretty grim after that nasty death cross in November, suggesting a further drop towards $1.82.
The situation’s been made a lot worse by whales offloading XRP – a staggering $4 billion changed hands in November alone. This has really knocked the balance of supply and demand out of whack, shifting the market mood to bearish. But the Feds’ hint that they might soon stop tightening and that there’ll be a rate cut in December has stopped things sliding even further.
Key factors to watch in the next little while are:
- Inflows to XRP-spot ETFs are still pretty weak
- Those whales are still unloading XRP – a total of $4b so far
- That November Death Cross is still hanging over the market
- There’s still some support coming from the possibility of the Fed easing up a bit, though
Medium-term Catalysts Offer a Little Bit of Hope
It’s all doom and gloom in the short term, but certain events in the medium term might tip the balance in XRP’s favour. Market participants are keeping a very close eye on the following developments, which could give XRP a boost:
- How XRP-spot ETF inflows and adoption play out
- The Senate’s vote on that Market Structure Bill
- The OCC’s decision on Ripple’s bid for a chartered banking license
XRP had been flying high back in July, reaching an all-time high of $3.66 amid anticipation of Spot ETF launches. But the SEC threw a spanner in the works by delaying launches even after the Ripple lawsuit was resolved, which caused a bit of a setback. Other challenges facing the market this year have included US-China trade tensions and falling expectations for Fed rate cuts.
XRP-spot ETFs have had some modest inflows – a total of $643.92 million so far – although this is dwarfed by the $858.3 million net inflows seen in just two trading days by the BTC-spot ETF – and that’s a pretty clear measure of XRP’s underperformance.
Risks and Opportunities Ahead
The biggest near-term unknown is the behaviour of institutions – particularly BlackRock’s notable absence from XRP ETFs. And then of course there’s the looming deadline for MSCI to review Digital Asset Treasuries (DATs) – with decisions due by January 15, 2026 – which could send the market either way.
Downside risks include:
- MSCI is deciding to delist DATs
- Spot ETF demand stays sluggish
- And if the OCC decides to reject Ripple’s bid for a US-chartered banking license
Upside catalysts could bring a rally in XRP’s price if:
- Demand for Spot ETFs suddenly surges
- BlackRock finally launches an iShares XRP Trust
- MSCI decided not to delist those DATs after all
- The Senate passes the Market Structure Bill
Traders are going to want to keep an eye on that $1.82 support level and that ATH of $3.66, balancing the need to be cautious about short-term prices against the possibility that these medium-term developments might all work out in XRP’s favour.
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