XRP News Today: XRP's DeFi Bridge Faces Test: Institutional Bet and Whale Accumulation vs. Market Jitters

XRP, the digital asset developed by Ripple, has surged in recent weeks amid growing institutional interest and strategic developments in decentralized finance (DeFi). The cryptocurrency is currently trading near $2.50, with analysts highlighting a critical liquidity threshold at $2.55 that could determine its near-term trajectory. This momentum coincides with CreditBlockchain's exploration of cloud-based frameworks to enhance digital asset operations, signaling a shift toward infrastructure-driven growth in the sector.

A key catalyst for XRP's rise is the launch of mXRP, a liquid-staking token introduced by Axelar, Midas, and Lista DAO on the BNB Chain. This product allows XRP holders to earn yield through DeFi protocols while maintaining onchain transparency and governance. With $800 million in wrapped XRP already on BNB Chain, the expansion of mXRP is seen as a bridge to broader adoption, particularly as it leverages institutional-grade custodial technology from Fireblocks and Fordefi.

Meanwhile, market dynamics suggest a mix of optimism and caution. Whale activity has intensified, with large holders increasing their XRP exposure by 1.18% since mid-October, now controlling 13.43% of the total supply. This accumulation contrasts with weaker retail demand, as futures open interest (OI) has declined to $3.67 billion from $4.11 billion in early November. However, the OI-weighted funding rate has turned positive (0.0049%), indicating a gradual shift toward long positions.

Technically, XRP faces a pivotal test at $2.55, where significant liquidity is stacked. If it breaks above this level, it could target $2.65, aligning with Fibonacci retracement levels and recent ETF-driven inflows. Conversely, a drop below $2.31 - a key support zone - could expose the asset to further downside, according to on-chain analysts. This volatility follows the debut of the XRP ETF, which attracted $245 million in net inflows on its first day, outpacing Bitcoin and Solana ETFs.

Corporate developments also bolster XRP's narrative. Ripple's $500 million funding round, featuring Citadel Securities and Pantera Capital, has pushed its valuation to $40 billion. The company's partnership with Mastercard and Gemini to enable stablecoin payments for credit card transactions further cements XRP's role in traditional financial infrastructure.

Despite these positives, challenges remain. Broader crypto markets have turned bearish, with Bitcoin and Ethereum down over 6% in 24 hours. XRP's price dipped 7.8% in the same period, reflecting profit-taking and macroeconomic jitters ahead of the Federal Reserve's policy decision. Analysts stress that sustained recovery will depend on XRP holding key supports and improved market sentiment.