The cryptocurrency market presents a curious contradiction. Despite Ripple Labs achieving a major regulatory milestone and XRP exchange-traded funds (ETFs) attracting record capital, the price of XRP continues to hover around the $2 mark. The bullish nature of the underlying fundamentals is no longer in question; the market now awaits their translation into price action.
Unprecedented ETF Demand Meets Price Inertia
A clear signal of institutional interest is the sustained capital inflow into XRP spot ETFs. For 19 consecutive trading days, these funds have recorded positive inflows, accumulating approximately $975 million. On December 12 alone, an additional $20 million flowed in, led by Franklin Templeton’s XRPZ ETF with an $8.7 million intake. The total assets under management have now surpassed $1.1 billion, a figure that exceeds the holdings of Solana ETFs despite their earlier launch.
This persistent demand alongside a stagnant price suggests institutions are accumulating long-term positions without anticipating immediate gains. Such activity may be establishing a structural price floor, even as short-term selling pressure dominates the current trading environment.
A Federal Banking Charter: A Game Changer for Ripple
In a pivotal development, Ripple Labs received preliminary approval from the U.S. Office of the Comptroller of the Currency (OCC) on December 12 to establish the Ripple National Trust Bank in New York. This federal-level banking charter elevates Ripple to the regulatory tier occupied by established entities like Circle, Fidelity Digital Assets, and Paxos.
The license grants Ripple direct control over the reserves backing its $1.3 billion RLUSD stablecoin, a responsibility previously held by the Bank of New York. CEO Brad Garlinghouse hailed the approval as a “massive step forward.” Operating under federal oversight could eventually allow Ripple to offer custody services to other financial institutions.
Concurrently, RLUSD is expanding its presence onto additional blockchain networks, including Solana and Ethereum. This multi-chain strategy is designed to increase the stablecoin’s utility within the decentralized finance (DeFi) ecosystem.
Should investors sell immediately? Or is it worth buying XRP?
Technical Indicators Paint a Cautious Short-Term Picture
From a chart perspective, XRP has been trading within a tight corridor between $2.00 and $2.04. Since December 9, the asset has been forming lower highs, tracing a descending micro-channel. The Relative Strength Index (RSI) sits at 28.8, indicating neither overbought nor oversold conditions. All major moving averages are positioned above the current price, signaling persistent downward pressure.
Critical support is identified at $1.97. A breakdown below this level could trigger selling pressure toward $1.90 or even $1.83. For a trend reversal, XRP must reclaim the resistance zone between $2.05 and $2.08. Some technical analysts note the potential formation of an inverse head-and-shoulders pattern—a traditional bullish reversal signal. A confirmed breakout from this pattern could set a sight on the psychological $3 threshold.
Surging Network Activity and Institutional Backing
On-chain metrics reveal record-high activity on the XRP Ledger. This surge coincides with the expansion of Ripple’s On-Demand Liquidity (ODL) service, which processed $1.3 trillion in transaction volume during the second quarter of 2025 alone. Annualized, this equates to a staggering $5.2 trillion.
Furthermore, Ripple secured a $500 million investment from Wall Street titans including Citadel Securities and Fortress Investment Group, valuing the company at over $40 billion. This capital infusion underscores the growing engagement of traditional finance with Ripple’s payment infrastructure.
The Path Forward: A Test of Patience
The long-term outlook for XRP is shaped by constructive fundamentals: the banking charter, relentless ETF inflows, and deepening institutional partnerships. In the immediate term, however, the price remains trapped in a consolidation phase. The coming days will determine whether buyers can successfully defend the $2 level or if further retracements are imminent.
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