XRP’s price continues to hover stubbornly around the $2.20 level, seemingly indifferent to a series of significant developments. A paradoxical situation is unfolding: while Ripple celebrates a major regulatory milestone in Abu Dhabi and U.S. institutions pour hundreds of millions into the token via ETFs, major investors are simultaneously liquidating substantial holdings. This creates a critical juncture for the digital asset—will it break free from this stalemate or face a decline below the psychologically important $2.00 support?
U.S. ETFs Demonstrate Robust Appetite for XRP
The nascent U.S. spot ETF market for XRP is showing remarkable strength. In the week since these products launched, they have attracted cumulative inflows exceeding $644 million. The total assets under management have now reached approximately $676 million.
Leading institutional positions include:
* Canary Capital: ~$329 million
* Bitwise: ~$168 million
* Grayscale & Franklin Templeton: ~$150 million each
On the most recent trading day alone, the funds saw inflows of $21.8 million, with Bitwise leading the activity. Market analysts project that if this pace continues, the ETFs could annually absorb XRP worth billions of dollars from the open market. This presents a potential supply shock, particularly if new token issuance fails to keep up with this institutional demand.
Abu Dhabi Regulator Greenlights Ripple’s Stablecoin
A key announcement emerged from the United Arab Emirates, where the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market has officially classified Ripple’s stablecoin, RLUSD, as an “Accepted Fiat-Referenced Token.” This authorization permits licensed financial institutions within the free trade zone to utilize the token for regulated activities, ranging from payment settlements to collateral in prime brokerage services.
Key RLUSD Details:
* Current market capitalization surpasses $1.2 billion
* Fully backed 1:1 by U.S. dollars
* Issued under the supervision of the New York Department of Financial Services
Should investors sell immediately? Or is it worth buying XRP?
This regulatory approval is more than a mere formality; it provides Ripple with strategic access to the Middle Eastern market, complementing its existing permissions in the Dubai International Financial Centre. For the XRP ledger, this integration promises deeper involvement in the cross-border payment systems used by institutional players.
Conflicting Signals from Major Holders
On-chain data reveals a market at odds with itself. In a bullish signal, Whale Alert reported the movement of 110.193 million XRP (valued at roughly $244 million) from the BTC Markets exchange to a wallet activated by BitGo. As BitGo is a leading institutional custodian, this transfer strongly indicates long-term accumulation by professional investors.
Contrasting this, established whales have sold close to 1.5 billion XRP over the past month, with 180 million tokens liquidated in this week alone. This wave of profit-taking provides a clear explanation for the price stagnation at $2.20 despite overwhelmingly positive headlines.
A minor but notable detail: the XRP burn rate—tokens permanently removed from circulation via transaction fees—surged by 31 percent in 24 hours, climbing from 540 to over 708 XRP. This points to heightened network activity, even if the nominal amount remains small.
Technical Outlook: A Precarious Balance
From a technical perspective, XRP is currently trading within a tight corridor between $2.19 and $2.23. Its 24-hour trading volume has dipped by nearly 8 percent to $3.95 billion, suggesting waning short-term speculative interest. The Fear-and-Greed Index sits at a worryingly low 22, indicating “Extreme Fear” and a generally tense market sentiment.
The pivotal question remains whether the crucial psychological support at $2.00 will hold firm. On the upper end, immediate resistance forms at the $2.25 and $2.30 price levels. Until these resistance points are decisively broken, XRP appears trapped in a no-man’s-land, caught between robust institutional demand and persistent selling pressure from long-term holders.
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