XRP Drops Below $2 Despite $1 Billion in ETF Inflows: What’s Next for the Price?

XRP Drops Below $2 Despite $1 Billion in ETF Inflows: What’s Next for the Price?

The market for spot XRP exchange-traded funds (ETFs) has captured significant investor interest, amassing nearly $1 billion in inflows since their debut. However, this momentum was not sufficient for bulls to maintain the XRP price above the crucial $2 support level.

Key Takeaways:

Spot XRP ETFs have experienced inflows for 20 consecutive days, totaling $1.2 billion.
The XRP price has continued its downward trajectory, falling below vital moving support levels.

Spot XRP ETFs Attract $1 Billion in Inflows Over Three Weeks

US-based spot XRP ETFs have seen inflows for an impressive 20 straight days, highlighting the strong institutional demand for the cryptocurrency. According to data from SoSoValue, XRP ETFs collected $20.2 million just on Friday, pushing total inflows to $990.9 million and total assets to above $1.2 billion. The Franklin XRP ETF (XRPZ) led the charge with $8.7 million in inflows on Friday, bringing its net assets to $175 million.

Related:__XRP Buy Signal Flashes as Funding Rate Turns Negative: Will Bulls Step In?

On December 12, only the Bitwise XRP ETF (XRP) and the Canary XRP ETF (XRPC) saw inflows, while the Grayscale XRP Trust ETF (GXRP) and the 21shares XRP ETF (TOXR) did not experience any inflows.

XRP ETFs inflows. Source: SoSoValue

This robust performance of XRP ETFs showcased growing confidence among institutional investors. In comparison, spot Bitcoin ETFs reported inflows of $49 million on the same day, while spot Ether ETFs saw outflows of $19.4 million, reducing their cumulative inflows to $13.1 billion.

“US spot $XRP ETFs have now notched up 20 consecutive days of inflows since launch, even while $BTC and $ETH ETFs grapple with outflows,” noted analyst Bitcoinsensus in a post on X. Cointelegraph previously reported that the rising demand for XRP ETFs reinforces a bullish outlook for the altcoin, with a potential rally to $10 still conceivable by 2026.

XRP Price Dips Below Key Support Levels

Despite the sustained demand for XRP ETFs, the price has failed to remain above the $2 mark, with technical indicators suggesting a possibility of a deeper price correction.

On Monday, XRP's price extended its downward trend, declining over 11% in the past 10 days and dropping below $2 for the second time since November 21. The XRP/USDT trading pair is currently testing a daily order block around $1.93, which is exhibiting limited support according to data from Glassnode.

Glassnode's UTXO realized price distribution (URPD) shows average prices at which holders bought their coins, indicating that smaller clusters exist below the $1.90 mark. This signifies that fewer holders are likely to support the price at that level.

The next significant support level is at $1.78, where approximately 1.85 billion XRP were previously purchased.

XRP: UTXO realized price distribution (URPD). Source: Glassnode

If XRP's price breaches this support level, it could fall toward a lower green zone, backed by the $1.61 local low and the 200-week exponential moving average (EMA), around $1.40, which serves as a critical last defense point for the XRP price.

_XRP/USDT weekly chart. Source: Cointelegraph/_TradingView

XRP's decreasing momentum is further emphasized by the relative strength index (RSI), which has reached its lowest level since July 2024. If the price breaks below $2, the XRP/USDT pair is projected to experience further declines down to $1.75 and possibly to the local low of $1.61.