The broader cryptocurrency sector is navigating a period of uncertainty, yet XRP is exhibiting a notable divergence. A fascinating dynamic is unfolding behind the scenes, characterized by massive accumulation from financial institutions being counterbalanced by significant profit-taking from long-term holders. While Wall Street pours unprecedented sums into the asset, its price has yet to reflect this burgeoning demand.
Regulatory Progress in Asia Fuels Long-Term Optimism
Beyond the influence of American finance, a key regulatory development in Singapore is generating positive sentiment. The Monetary Authority of Singapore (MAS) has expanded Ripple’s license, significantly facilitating cross-border payments utilizing both XRP and the RLUSD stablecoin. Market experts interpret this move as a crucial step toward increasing the token’s real-world utility across Asia. This adoption potential is viewed by some as a factor that could justify long-term price targets exceeding the $4.00 threshold.
Whale Activity Offsets ETF Inflows
Despite these strong fundamental indicators, XRP’s price has been consolidating near $2.07. This stagnation is primarily attributed to substantial selling pressure from large-scale investors. On-chain analytics reveal that a single “whale” address liquidated approximately 510 million XRP over the past week. This wave of selling has nearly completely neutralized the buying pressure from exchange-traded funds, effectively containing the price within a narrow band above the critical $2.04 support level.
Concurrently, an interesting market anomaly has emerged: short sellers have largely retreated. Data indicates extremely low interest in establishing short positions, which analysts perceive as a precautionary stance against a potential sudden upward price movement.
Should investors sell immediately? Or is it worth buying XRP?
Wall Street’s Billion-Dollar Bet
Interest from traditional finance has escalated to a new peak. XRP-focused spot ETFs have recorded uninterrupted capital inflows for 15 consecutive days, amassing nearly $900 million. This surge has propelled the assets under management (AUM) for XRP investment vehicles beyond the $1 billion mark.
In a parallel development strengthening its foundation, Ripple Labs has secured a $500 million funding round from institutional heavyweights including Citadel Securities and Fortress Investment Group. This capital injection values the company at $40 billion, signaling profound confidence in the long-term viability of its ecosystem, irrespective of ongoing short-term regulatory discussions in the United States.
Technical Outlook Hinges on Key Levels
The technical landscape presents a clear dichotomy. Should bullish forces successfully absorb the available seller supply and achieve a sustained breakout above the $2.41 resistance level, the path would be cleared for a more dynamic upward trend. Conversely, a breach of the $2.04 support zone could trigger a test of deeper liquidity areas around $1.73.
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