While XRP’s market price currently displays notable weakness and struggles with key technical barriers, a deeper examination of on-chain data and institutional activity reveals a starkly contrasting narrative. The digital asset, trading around $2.03, finds itself caught between short-term selling pressure and powerful underlying accumulation signals.
Institutional Demand and Regulatory Progress Provide a Solid Foundation
Despite the subdued price performance, institutional interest remains robust. Spot exchange-traded funds (ETFs) dedicated to XRP continue to experience consistent net inflows, with total assets under management now approaching $1.6 billion. Notably, these funds have yet to record a single day of net outflows, indicating a structural demand that appears decoupled from daily trading volatility.
This institutional confidence is bolstered by significant regulatory advancements. Following its approval in the United Kingdom, Ripple has now secured a provisional payments institution license in Luxembourg. The company currently holds over 75 licenses globally, a milestone that substantially eases its expansion within the critical European Union market.
Network Activity Soars as Exchange Supply Dwindles
Fundamental metrics paint a picture of growing adoption and potential scarcity. Activity on the XRP Ledger hit a six-month high this week, processing 1.45 million daily transactions. This surge is primarily driven by new stablecoin integrations and an increase in cross-border payment flows.
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Concurrently, the available supply on centralized exchanges is drying up. Holdings on these trading platforms have fallen below 2 billion tokens, reaching their lowest level since 2018. Market observers frequently interpret this trend as a sign of accumulation, suggesting that investors are moving holdings to private, cold storage wallets for long-term safekeeping rather than keeping them readily available for immediate sale.
Technical Hurdles Confront Overextended Selling Pressure
In the near term, bearish sentiment dominates price action. The token, down approximately 1.5% from the previous day, has repeatedly failed to break through the resistance zone near $2.13. Market participants have consistently used any strength at this level as an opportunity to realize profits, perpetuating a “sell-the-rally” pattern that continues to apply downward pressure.
This retreat brings the psychologically significant $2.00 support level into focus. A breach of this floor could trigger further declines toward $1.90. However, the Relative Strength Index (RSI) reading of 28.8 suggests the asset is deeply oversold, increasing the probability of a near-term technical rebound or consolidation.
The Patience Game: Awaiting a Convergence
The current scenario presents a classic test of investor patience. While the operational foundation strengthens through regulatory clarity and institutional adoption, the price chart remains under strain. For a sustainable trend reversal, XRP needs to decisively break above the $2.13 resistance level with substantial trading volume. Until that occurs, the immediate focus for the market will likely remain on defending the $2.00 mark to prevent a slide toward new annual lows. The widening gap between strong fundamentals and weak price action sets the stage for a potentially significant move once this technical impasse is resolved.
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