XRP at a Pivotal Support Zone: Is Now the Time to Buy the Dip?

XRP is at a critical juncture. The token has been trading in a tight range between $1.85 and $1.91, with institutional demand and technical indicators creating a compelling narrative for long-term investors. While the price has struggled to break above $1.90-a level repeatedly tested since late 2025-the convergence of institutional ETF inflows and on-chain accumulation suggests a potential inflection point. This article examines whether XRP's current support zone represents a buying opportunity, leveraging technical analysis and institutional demand dynamics.

Technical Analysis: A Tense Equilibrium

XRP's price action has been defined by a defined channel, with $1.85–$1.87 acting as a critical support floor and $1.90–$1.91 as a stubborn resistance ceiling. According to a report by , the token has failed to close above $1.90 due to "overhead supply pressure," but consistent buying at $1.86–$1.87 has reinforced this support level. A breakdown below $1.85 would likely shift focus to the $1.77–$1.80 range, a historically significant floor. Conversely, a clean retest of $1.90 followed by sustained bullish momentum could open the path to $1.95–$2.00.

On-chain data further underscores this tension. Whale holdings have steadily declined throughout late 2025, signaling de-risking by large holders. However, retail panic selling has been replaced by disciplined institutional accumulation, with exchange-held supply dropping 45% in 60 days as institutions moved 1.35 billion XRP tokens into custody according to CoinDesk. This structural shift has tightened market volatility and created a "controlled positioning" phase, where price consolidation may precede a breakout according to MEXC.

Institutional Demand: ETFs as a Stabilizing Force

XRP's institutional adoption has accelerated, with spot ETFs absorbing over $1.25 billion in net inflows since their launch according to Mitrade. These inflows have directly contributed to the reinforcement of key support levels. For instance, ETF-driven supply absorption has shifted the $2.00 support level into a low-entry point for institutional buyers according to 247 Wall Street. Despite recent ETF inflows slowing to $82.04 million for the week-the weakest since launch-cumulative assets under management remain robust, signaling long-term confidence according to FXEmpire.

The impact of ETFs on technical structure is evident. Over 45% of XRP exchange balances have been withdrawn into custody, reinforcing the $2.00 support level according to MEXC. This trend aligns with Fibonacci-based projections suggesting a potential double-digit price target if XRP breaks above its current range according to MEXC. Additionally, institutions are increasingly favoring structured products for XRP exposure, creating a stabilizing effect that prevents sharp declines even amid choppy short-term price action according to CoinDesk.

Convergence of Technical and Institutional Dynamics

The interplay between technical support levels and institutional demand creates a unique scenario. While XRP's price remains below critical EMAs (50-day at $2.13, 200-day at $2.41), ETF inflows have offset short-term selling pressure. For example, the $1.85 support level has been reinforced by ETF accumulation, with institutions acting as a buffer against further downside. This divergence between technical indicators and institutional behavior highlights a potential inflection point: if XRP holds above $1.85 and ETF inflows continue to outpace distribution, the token could transition from a bearish consolidation phase to a bullish breakout.

However, risks remain. A breakdown below $1.85 could trigger a cascade toward $1.62 and potentially $1.25. Conversely, a sustained move above $1.90 would validate the ETF-driven base and signal renewed institutional confidence.

Is Now the Time to Buy the Dip?

The answer hinges on two factors: the resilience of $1.85 and the continuation of ETF inflows. Historically, XRP has demonstrated resilience at $2.00, with large buyers absorbing liquidity at critical thresholds. The current ETF-driven supply absorption mirrors this pattern, suggesting that institutional demand is structuring the market for a long-term base.

For investors, the key is to monitor both price action and on-chain metrics. If XRP holds above $1.85 and ETF inflows stabilize, the dip could represent a strategic entry point. However, a breakdown below $1.85 would necessitate a reassessment of risk-reward dynamics.

Conclusion

XRP's pivotal support zone reflects a convergence of technical and institutional forces. While the token faces near-term challenges, the structural shift toward institutional adoption and ETF-driven supply absorption creates a compelling case for cautious optimism. Investors should remain vigilant but recognize that the current environment may offer a unique opportunity to participate in a potential breakout.