XRP News Today: XRP's $2.05 Battleground: ETFs Fuel Bull-Bear Clash

XRP's price plunged 7% to $2.05 in recent trading, raising urgent questions about whether the level will hold as a critical support zone amid a volatile market backdrop. The decline, driven by institutional selling and broader crypto market weakness, has pushed the token back into its November correction range, with analysts closely monitoring technical indicators for signs of stabilization. Despite the sharp drop, XRP ETF inflows have surged to over $622 million, reflecting sustained institutional demand and regulatory-driven optimism https://coinedition.com/xrp-price-today-targets-2-60-surge-as-xrp-etfs-hit-622m-inflows/.

The $2.05 level has emerged as a pivotal battleground for XRP. According to technical analysis from CoinDesk, a breakdown below this threshold could expose the $1.80–$1.87 demand band, which noted that volume spiked to 309.2 million during the recent selloff-over 4.6 times the rolling average-confirming institutional exit flows. Conversely, holding above $2.05 could trigger a rebound toward the $2.60 target, as suggested by analyst Ali Martinez, who highlighted the asset's potential to reclaim its trading channel's midpoint if ETF inflows continue.

Institutional interest in XRP has intensified following the launch of multiple spot ETFs, with Franklin Templeton's XRPZ and Grayscale's GXRP leading the charge. These products have attracted $628 million in cumulative assets, with daily inflows peaking at $164 million, signaling a shift in institutional behavior toward regulated XRP exposure. The ETF structure itself, which requires direct XRP purchases during creation cycles, has further tightened the token's free float, amplifying price sensitivity to new capital flows.

Technical indicators present a mixed picture. While XRP formed a golden cross on the hourly chart-where short-term moving averages crossed above long-term ones-suggesting a bullish reversal, broader momentum remains fragile. The token's RSI at 56.06 indicates it is not yet overbought, leaving room for further gains if buyers defend $2.05. However, the breakdown below $2.16 marked a decisive failure of recent consolidation, with bears now in control of a descending channel defined by lower highs at $2.38, $2.30, and $2.22.

Market participants are also watching for regulatory developments. Ripple's recent approval from Singapore's MAS to expand its digital payments operations underlines growing institutional confidence in the asset's compliance framework. Meanwhile, concerns over privacy governance in other cryptocurrencies, such as Zcash, highlight the relative stability of XRP's institutional infrastructure.

The coming days will test XRP's resilience. A clean break above $2.35 could reignite upward momentum, while a sustained breach of $2.05 would likely accelerate the token toward $1.80. With ETF inflows showing no signs of slowing and technical indicators pointing to a potential rebound, the market remains in a state of flux. Investors are advised to monitor volume dynamics and key resistance levels as the battle for $2.05 unfolds.