XRP News Today: XRP ETFs Challenge Bearish Slump as Support Levels Tested

Ripple's RLUSD, the XRP-pegged stablecoin, is poised to catalyze broader adoption of the XRP ecosystem, according to industry analysts, as the altcoin navigates a turbulent market environment marked by institutional outflows and technical headwinds. The recent volatility in XRP, currently trading near $2.27, has raised questions about its ability to regain momentum amid a bearish sentiment that has persisted since mid-October according to market analysis.

The XRP price has faced significant downward pressure, with institutional and retail investors withdrawing from the asset. CoinShares reported $15.5 million in outflows from XRP-related products last week, driven by macroeconomic uncertainty. This follows a broader trend of declining futures open interest (OI), which has plummeted from a peak of $10.94 billion in July to $3.61 billion as of Monday, signaling waning speculative interest. The liquidation heatmap further highlights fragile support levels, particularly around $2.20, which has been tested repeatedly but remains vulnerable to a breakdown.

Despite the bearish backdrop, optimism persists among XRP bulls, fueled by the imminent launch of multiple spot ETFs. Four XRP ETFs are set to debut this week, with three additional filings expected within 21 days. The first of these, Canary Capital's XRPC, generated $58 million in day-one volume on Nasdaq, outperforming prior ETF launches and suggesting strong institutional appetite. Analysts project that these products could unlock $4 billion to $8 billion in inflows during their first year, potentially reversing the recent outflows and stabilizing the price.

Technical indicators, however, remain mixed. XRP is trading below key moving averages, including the 50-day EMA at $2.49 and the 200-day EMA at $2.56, forming a descending trendline that has dictated momentum since July. The Relative Strength Index (RSI) at 43 and a bearish MACD signal further reinforce short-term selling pressure. A critical test for bulls lies in reclaiming the $2.20 support level, which has historically shielded the price from deeper declines but has shown weakening absorption in recent sessions.

The broader market context complicates XRP's outlook. A flash crash on October 10 liquidated $19 billion in crypto assets, exacerbating retail and institutional exits. Meanwhile, Tether's recent investment in Latin American crypto platform Parfin to expand USDT adoption highlights the growing competition for stablecoin dominance, which could indirectly influence XRP's utility in cross-border transactions.

Investor sentiment remains divided. While some analysts argue that the ETF launches could trigger a rally toward $2.60 if XRP holds above $2.20, others warn that a close below $2.00 would invalidate bullish patterns and accelerate a move toward $1.90. The market's ability to absorb large inflows from ETFs will be pivotal, as current spot flows show continued distribution, with $9.4 million in outflows recorded in the latest session.