XRP is currently presenting a market puzzle. As the digital asset’s price faces near-term pressure and tests key technical levels, underlying fundamental metrics are flashing a distinctly bullish signal. The divergence between current price action and surging institutional interest has rarely been more pronounced.

Institutional Bets Defy the Downtrend

The most compelling counter-narrative to the current price softness originates from the exchange-traded fund (ETF) arena. U.S. spot ETFs for XRP have recorded nearly two straight weeks of uninterrupted net inflows. Approximately $874 million has poured into these investment vehicles, pushing the total assets under management (AUM) to the verge of breaking the $1 billion threshold.

A significant portion of this capital is being directed toward the Canary Capital ETF. This sustained accumulation suggests professional and institutional investors are leveraging the price correction to build positions, even as retail participation appears more subdued.

A Battle for Key Price Support

Technically, XRP is consolidating, trading around $2.10. Market analysts are closely watching the $2.00 support level, which is widely viewed as a critical line of defense for bullish sentiment. Momentum indicators currently suggest a cooling trend, raising the risk that a decisive break below this psychological barrier could trigger further selling.

However, catalysts for a reversal remain in play. Some observers anticipate a potential year-end “Santa Rally,” which could be fueled by expectations for interest rate cuts from the U.S. Federal Reserve following its upcoming policy meeting.

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On-Chain Data Reveals a Shifting User Base

Analysis of on-chain activity corroborates this shift in market structure. The “Velocity,” or circulation speed, on the XRP Ledger hit a yearly high this week, indicating heightened liquidity and significant portfolio rebalancing among large wallet addresses.

Conversely, the number of daily active accounts has declined notably, remaining well below levels seen during previous retail-driven hype cycles. This data implies the network is becoming less influenced by broad speculative trading and increasingly dominated by concentrated, institutional-grade activity.

Further fundamental support comes from Ripple’s recent completion of its acquisition of GTreasury. By integrating blockchain technology into the systems of over 800 global corporate clients, this move opens access to a vast market for payment settlement and strengthens the network’s underlying utility case.

The Bottom Line

XRP finds itself at a crossroads. In the short term, the price must defend the crucial $2.00 support zone. Simultaneously, fundamental drivers—from record ETF inflows to strategic infrastructure expansion—are as robust as they have been in recent memory. The resolution of this tension may hinge significantly on the Federal Reserve’s interest rate decision scheduled for December 9th and 10th.

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