The XRP cryptocurrency spent the weekend in a tense battle to hold the psychologically significant $2.00 level. This struggle is unfolding against a backdrop of several positive developments for Ripple, its associated company. Despite consistent inflows into XRP-focused ETFs and clear regulatory progress, the asset’s price continues to show weakness, prompting questions about the underlying market dynamics.
Sustained ETF Demand Fails to Lift Price
A notable divergence is evident in fund flows. On December 11, U.S.-listed XRP spot exchange-traded funds recorded inflows of $20.17 million. This marked the 19th consecutive trading day of net positive inflows. Since their launch, these funds have accumulated approximately $975 million in total assets.
Trading volume recently stood 12.34% above the weekly average, suggesting active portfolio adjustments by institutional investors. While these persistent inflows provide underlying support, they have so far been insufficient to fully counteract the prevailing selling pressure on the spot price.
Regulatory Milestone: Ripple Secures U.S. Banking Charter
In a significant regulatory advancement, the U.S. Office of the Comptroller of the Currency (OCC) approved Ripple’s application for a national bank charter on December 12. This places the firm among a group of roughly 60 supervised financial institutions, effectively building a bridge between traditional finance and the crypto ecosystem.
Ripple CEO Brad Garlinghouse called the approval a “massive step forward” for the company’s RLUSD stablecoin, which will now be regulated at both federal and state levels. He also addressed opposition from banking industry lobbyists, stating, “Their anti-competitive tactics are transparent. They complained that crypto doesn’t play by the same rules—yet here is the crypto industry, directly under OCC supervision.” The move came despite earlier objections from the Independent Community Bankers of America (ICBA), which had expressed concerns that Ripple might circumvent regulatory requirements and draw deposits away from traditional banks.
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European Expansion and DeFi Integration
Concurrently, Ripple announced its first European bank partnership. Switzerland-based AMINA Bank will utilize Ripple’s RLUSD stablecoin for real-time cross-border payments, representing a key entry into the regulated European market.
In a separate development aimed at broadening utility, Hex Trust revealed plans to launch Wrapped XRP (wXRP). This is a 1:1 backed version of XRP designed for use on the Ethereum, Solana, Optimism, and HyperEVM networks. Reports indicate over $100 million will be deposited at launch, significantly expanding XRP’s potential applications within the decentralized finance (DeFi) sector.
Technical Picture Points to Consolidation
From a technical analysis perspective, the situation remains precarious. XRP is currently trading at $2.04, notably below its 50-day moving average of $2.26. While the support zone around $2.00 is being vigorously defended, any recovery attempts toward $2.06 are meeting immediate selling interest.
The Relative Strength Index (RSI) reading of 28.8 signals oversold conditions. A decisive break below $1.98 could trigger further downward momentum toward $1.90. Conversely, a daily close above $2.06 would be required to push back against bearish sentiment.
The clear disconnect between strengthening fundamentals and weak price performance suggests the market is undergoing a consolidation phase. Whether the sustained ETF inflows and expanding infrastructure will catalyze a medium-term trend reversal will likely depend on broader market sentiment and ongoing regulatory developments in the United States.
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