While XRP’s spot price struggles near the $2.10 level, a starkly different narrative is unfolding in the regulated investment sphere. Over the past 30 days, more than $824 million has flowed into regulated XRP investment vehicles. This institutional buying pressure presents a curious contrast to the token’s recent lackluster price performance.

Price Action and Technical Outlook

As of Saturday, XRP is trading around $2.12. The digital asset has experienced a consolidation phase over the last 24 hours, fluctuating between $2.02 and $2.21 without establishing a clear directional trend. Daily trading volume across major exchanges remains robust, exceeding $3 billion, while its market capitalization holds steady near $122 billion.

A technical analysis of the daily chart reveals mounting pressure. XRP is currently testing the lower Bollinger Band, threatening to breach the psychologically significant $2.00 support level. A confirmed breakdown below this threshold could potentially trigger a further decline toward the $1.80 mark.

Regulatory Developments Provide Tailwinds

The regulatory environment continues to evolve in ways that benefit XRP. The launch of a spot XRP contract on a CFTC-regulated trading platform is viewed by market participants as a de facto recognition of the token’s commodity status by the U.S. derivatives regulator.

In a parallel development, Ripple has secured an expanded Major Payment Institution license from Singaporean authorities. This approval grants the company regulatory clearance to utilize XRP for digital payment transactions across the Asian region, a key market for cross-border remittances.

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Underlying Network Strength

Despite the subdued price action, fundamental activity on the XRP Ledger remains vigorous. The network processes over 40,000 transactions daily, fueled by cross-border payments and growing decentralized exchange volume. The number of active wallet addresses continues to show a gradual increase, signaling sustained network growth and adoption.

Furthermore, Ripple’s scheduled release of 1 billion XRP from escrow at the beginning of December did not lead to a significant market sell-off. Contrary to some expectations, a substantial portion of these tokens was returned to escrow or moved into institutional custody solutions, averting a potential wave of selling pressure.

The Institutional Accumulation Trend

The most notable divergence between price and fundamentals is evident in the ETF flow data. Investment products from firms like Bitwise and Grayscale have recorded net inflows surpassing $824 million in the last month. This activity suggests institutional investors are strategically using the current period of price weakness to establish or increase their positions.

BlackRock’s digital asset division has consistently emphasized that verifiable utility—a core promise of the XRP ecosystem—will be a primary driver for the next wave of institutional capital allocation. While short-term traders exhibit caution, long-term investors appear to be building their exposure.

The fundamental case for XRP appears to be strengthening, as underscored by the CFTC’s early December assessment and the sustained network activity, even as the price faces temporary headwinds. Market observers now watch to see if the $2.00 support level will hold or if a correction toward $1.80 will materialize in the coming days.

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