XRP News Today: XRP ETF Can't Break Bearish Spell as $20 Dream Recedes

XRP's path to a $20 price target remains uncertain as bearish sentiment persists in the cryptocurrency market, despite the recent debut of the first U.S. XRP spot ETF. The token traded above $2.25 as of Friday, but its short-term outlook remains clouded by weak retail demand and a broader risk-off environment. The XRPC ETF, launched on Thursday, generated $59 million in trading volume on its first day, yet this has yet to translate into sustained price momentum for XRP according to analysis.

A critical metric highlighting the token's struggles is the "Supply in Profit," which measures the volume of XRP held at an unrealized profit. Data from Glassnode shows this figure has fallen to 44 million XRP as of Friday, a one-year low and a sharp decline from 64 million XRP in mid-July. This drop underscores a growing wave of unrealized losses among holders, which could signal a potential bottoming of sentiment if the dwindling supply available for sale curtails further downward pressure. However, the weak derivatives market complicates optimism: XRP's futures Open Interest (OI) averaged $3.78 billion on Friday, up slightly from $3.67 billion the prior day but still below the $4.17 billion recorded on November 1. Analysts suggest a sustained increase in OI is necessary to validate a short-to-medium-term recovery, as it reflects investor confidence and willingness to take on risk.

Technically, XRP faces significant hurdles. The token remains below key moving averages, including the 50-day EMA at $2.53 and the 200-day EMA at $2.57, reinforcing its bearish trajectory. The Relative Strength Index (RSI) at 43 and a declining MACD indicator further indicate that sellers retain control according to technical analysis. Meanwhile, the broader cryptocurrency market continues to struggle, with Bitcoin (BTC) and Ethereum (ETH) also underperforming. Bitcoin's price fell below $97,000 amid a 5.4% drop in total market capitalization to $3.36 trillion over 24 hours. ETF outflows for both BTC and ETH have exacerbated the downturn, with U.S.-listed BTC spot ETFs experiencing $870 million in outflows on Thursday - the highest since October 7 according to market data.

The XRP ETF's debut has not insulated the token from this broader sell-off. While the XRPC ETF exceeded expectations with $58 million in first-day volume according to reports, institutional and retail demand for crypto remains muted. The weak technical structure of XRP, coupled with macroeconomic uncertainty, leaves the path of least resistance firmly to the downside according to market analysis. Immediate support for XRP is currently at $2.30, with a breakdown potentially targeting $2.07, a level last tested on November 4 according to technical indicators.

Market participants are cautiously optimistic that the prolonged downturn could eventually reverse, particularly if reduced supply in profit and renewed institutional interest create a buying opportunity. However, for now, the bearish grip shows no signs of loosening, with XRP's $20 breakout remaining a distant prospect.