XRP at $1.87: Liquidity Clusters, ETF Inflows, and the Path to a Potential Reversal

The XRP price action at $1.87 has become a focal point for traders and institutional analysts, as it sits at the intersection of competing forces: concentrated selling pressure from large holders and a surge in ETF-driven demand. This price level represents not just a technical inflection point but a microcosm of broader market structure dynamics shaping the asset's trajectory in late 2025.

Market Structure at $1.87: A Battle of Bulls and Bears

According to a report by CoinDesk, XRP's price has been range-bound between $1.85 and $1.91 despite $1.25 billion in net inflows into XRP spot ETFs. This paradox underscores the tug-of-war between institutional buyers and persistent selling from large addresses. On-chain analytics reveal that over 430 million XRP have been deposited onto exchanges by whale wallets, artificially inflating supply and exerting downward pressure. The $1.90–$1.91 zone has emerged as a critical resistance cluster, where sellers are distributing into strength-a tactic where large holders offload tokens as the price rises.

Meanwhile, the $1.82–$1.87 range acts as a gravitational anchor for buyers. Technical analysts note that this area has been repeatedly tested and defended, suggesting a psychological threshold where retail and institutional buyers are willing to accumulate. However, the price's inability to reclaim $1.875–$1.88-a key micro-support level-raises concerns about the sustainability of this defense. If sellers continue to dominate, the next support target could be $1.77–$1.80, potentially triggering a deeper correction.

ETF Inflows: A Buffer or a Mirage?

While ETF inflows have absorbed much of the selling pressure, their efficacy as a long-term bullish catalyst remains debated. Data from MEXC's blog highlights that XRP's price stability around $1.86–$1.87 is largely attributable to ETFs acting as a "sponge" for excess supply. However, this dynamic may not hold if large holders escalate their distribution efforts. For instance, Standard Chartered's optimistic projection of XRP reaching $8 by 2026 hinges on the assumption that ETF inflows could surge to $10 billion by late 2026, effectively removing XRP from circulation and creating scarcity.

The current reality, however, is more nuanced. Open interest (OI) for XRP futures has plummeted to its lowest level since late 2024 on Binance, signaling reduced speculative activity and a derivatives market in rebalancing mode. This decline in OI suggests that leveraged traders are exiting positions, which could limit volatility but also reduce the price's responsiveness to news or macro shifts.

Risk/Reward Dynamics: The Path to a Reversal

The $1.87 level is a critical juncture for risk/reward analysis. If buyers can reestablish control above $1.875–$1.88, the asset may test the descending channel's upper boundary at $1.93, where long-term resistance resides. Conversely, a breakdown below $1.82 could accelerate the price toward $1.60 and even $1.25, levels last seen during the 2024 bear market.

Interestingly, AI-driven analysis from TradersUnion suggests that the $1.80 zone is showing early signs of accumulation, with stabilizing momentum and repeated defenses hinting at a potential base-building phase. This could imply that the current consolidation is not a continuation of the selloff but a setup for a reversal-if institutional buyers maintain their ETF-driven demand.

Broader Context: Macro and Micro Forces

According to broader macro conditions, XRP's underperformance relative to Bitcoin and Ethereum reflects risk-off sentiment and a lack of catalysts in the crypto sector. Yet, Ripple's infrastructure developments-such as the expansion of RippleNet and the launch of RLUSD-signal growing real-world utility for XRP, which could drive longer-term demand. These fundamentals, however, need to align with favorable market structure to translate into price action.

Conclusion: A Tipping Point

XRP at $1.87 is a microcosm of the asset's broader struggle: institutional demand versus whale-driven supply. While ETF inflows provide a floor, they are not a guarantee of upward momentum. The path to a potential reversal hinges on whether buyers can defend $1.875–$1.88 and whether ETF accumulation accelerates to offset selling pressure. For now, the market is in a delicate balancing act-one where even minor shifts in liquidity clusters or order book depth could tip the scales.