XRP News Today: XRP's $2.20 Showdown: ETF Hope vs. Bearish Tug-of-War

XRP's price has dipped below the critical $2.20 support level, sparking renewed concerns about its short-term trajectory despite a historic surge in institutional interest via newly launched exchange-traded funds (ETFs). The token, which had briefly rebounded to $2.26 following the debut of Franklin Templeton's XRPZ and Grayscale's GXRP ETFs, now faces a pivotal test as bears push it toward $2.20, a key psychological threshold according to market analysis. The ETFs attracted $164 million in inflows on their first day, outpacing Bitcoin and Ethereum during a period of broader crypto market weakness. However, this institutional enthusiasm has been offset by aggressive whale selling and derivatives liquidations, creating a tug-of-war between bullish and bearish forces.

Technical indicators paint a mixed picture. The Relative Strength Index (RSI) for XRP has rebounded to 39, suggesting some short-term strength but remaining far from overbought territory. Meanwhile, the MACD indicator showed a bullish crossover, reinforcing the potential for a near-term rally. Analysts highlight the importance of the $2.20 level, noting that a sustained break below this threshold could trigger a cascade to $1.88–$1.91, while a recovery above $2.30 might signal the resumption of a broader uptrend. On-chain data also reveals divergences in decentralized exchange (DEX) activity, with increased order placements and cancellations indicating positioning by experienced traders ahead of a potential price breakout.

The ETF launches represent a significant milestone for XRP, offering institutional investors a regulated avenue to access the token. Franklin Templeton's XRPZ, structured as a grantor trust, and Grayscale's GXRP, both custodied by Coinbase, have added credibility to XRP's market presence. These products join Bitwise's XRPC ETF, which attracted $250 million in day-one inflows, signaling growing acceptance of crypto in traditional finance. Yet, the token's price performance has been volatile, with derivatives markets recording a 1.7 billion drop in Binance open interest to $504 million—the lowest in 12 months. This reflects a broader shift in risk appetite, as macroeconomic uncertainties and regulatory scrutiny continue to weigh on the sector.

Market participants are closely watching the interplay between ETF-driven demand and technical resistance. While XRP's on-chain metrics suggest a "right-angled rising wedge" formation, with potential upside targets at $4.00 if the $2.20 support holds , bearish pressures remain strong. Whale distributions totaling 180 million XRP tokens have exacerbated downward momentum, particularly as derivatives leverage collapsed. Analysts caution that a failure to reclaim the 0.382 Fibonacci retracement level could undermine confidence in the token's long-term recovery.

Market participants are closely watching the interplay between ETF-driven demand and technical resistance. While XRP's on-chain metrics suggest a "right-angled rising wedge" formation, with potential upside targets at $4.00 if the $2.20 support holds, bearish pressures remain strong. Whale distributions totaling 180 million XRP tokens have exacerbated downward momentum, particularly as derivatives leverage collapsed. Analysts caution that a failure to reclaim the 0.382 Fibonacci retracement level could undermine confidence in the token's long-term recovery.

Looking ahead, the coming weeks will be critical for XRP. A successful rebound above $2.30 could validate the ETF-driven optimism, while a sustained break below $2.20 may accelerate a test of lower support levels. The token's ability to balance institutional inflows with market volatility will determine whether this correction marks a temporary setback or a deeper bearish phase.