XRP News Today: Institutional Optimism vs. Market Jitters as XRP ETFs Face Crucial Test

The launch of multiple spot XRP ETFs in the U.S. has ignited a tug-of-war between institutional optimism and market jitters, as the cryptocurrency's price flirts with critical support levels. Bitwise and 21Shares joined Franklin Templeton and Grayscale in offering regulated exposure to XRP, marking a milestone in the asset's quest for mainstream acceptance. However, the token's recent 7% drop below $2 despite the ETF debuts, underscores the fragility of its short-term prospects amid whale selling and broader crypto market weakness.

Bitwise's XRP ETF, which began trading on November 20, saw a robust $22 million in first-day volume, while Franklin Templeton's EZRP and Grayscale's GXRP are set to list this week. These products aim to bridge the gap between traditional investors and digital assets, with fees ranging from 0.34% to 0.5%. Yet, the market's reaction has been uneven. While ETFs like Canary Capital's XRPC set records with $58 million in day-one trading, XRP's price has struggled to stabilize, testing the $2 support zone - a level critical for long-term holders.

On-chain data from Glassnode reveals growing anxiety among XRP holders, with 41.5% of the supply now in a loss position, the lowest since late 2024. This structural fragility is compounded by whale activity: reports indicate over 200 million XRP sold within 48 hours of the ETF launches, exacerbating downward pressure. Technically, XRP faces a pivotal test. Analysts highlight two scenarios: a rebound above $2.195 could push the token toward $2.6, while a breakdown below $2 risks a slide to $1.5. The $3.6 resistance level, once a bullish benchmark, now looms as a distant target.

The SEC's approval of these ETFs has been hailed as a regulatory win for XRP, potentially legitimizing it as an institutional asset class. However, skeptics warn that meaningful inflows may take until 2026 to materialize, as advisors and pension funds cautiously integrate the token. Meanwhile, the ETFs' custodial structures - storing XRP in regulated trusts - aim to address liquidity concerns, though their ability to counter whale-driven volatility remains unproven.

Despite the ETF-driven optimism, macroeconomic factors and Bitcoin's performance will heavily influence XRP's trajectory. A recovery in large-cap crypto could amplify ETF-driven inflows, but persistent weakness may limit their impact. Analysts caution that market manipulation risks persist, given XRP's concentration among a few large holders. For now, traders are split: some view the $2 support as a buying opportunity, while others brace for a deeper correctionhttps://coinpaper.com/12501/xrp-price-prediction.