XRP News Today: XRP's $2 Battle: ETF Hope vs. Deepening Bearishness

XRP, the digital asset issued by Ripple, has entered a critical juncture as its price hovers near the $2 threshold, sparking anxiety among holders and traders. The token, which has seen a 12% weekly decline, is now testing key support levels at $1.91 and $1.73, with on-chain metrics signaling growing stress in the market. Analysts note that the Net Unrealized Profit/Loss (NUPL) indicator has dropped below 0.5, historically marking a shift from optimism to anxiety among long-term holders. This transition comes as XRP's price struggles to reclaim major moving averages, including the 50-day EMA at $2.49 and the 200-day EMA at $2.56. According to market analysis, the bearish pressure is compounded by technical indicators. The Moving Average Convergence Divergence (MACD) remains in sell mode, with the blue line staying below the red signal line, reinforcing the need for risk-off strategies. Meanwhile, the Relative Strength Index (RSI) at 43 suggests sellers retain control in the short term, though a move toward the bullish region could hint at a potential recovery. Traders are also watching for a bullish RSI crossover, which would signal renewed momentum. A potential catalyst for XRP's recovery could come from the imminent launch of multiple spot ETFs. Four XRP ETFs are set to debut on U.S. exchanges this week, with Wall Street firms like Grayscale and ProShares leading the charge. Analysts estimate these products could unlock $4 billion to $8 billion in institutional capital during their first year. The launches follow a successful precedent set by the XRPC ETF, which saw $245 million in inflows on its debut. However, bulls must first defend the $2.20 support level, as a breakdown could trigger further selling into liquidity gaps below $2.15.

Institutional and retail demand for XRP has waned in recent weeks. CoinShares reported $15.5 million in outflows from XRP-related digital products last week, driven by macroeconomic uncertainty. Open Interest in XRP futures has also declined sharply, averaging $3.61 billion-far below July's record highs of $10.94 billion. This weak derivatives activity underscores diminished retail participation and skepticism about a near-term rally. The market's psychological battle at $2 is further complicated by historical patterns. Chart analysts have highlighted a recurring five-wave structure in XRP's price action, where holding $2.15 support has previously led to breakouts toward $3. However, a failure to defend this level could trigger a capitulation phase, with forced selling at $1.73 and beyond. While some technical analysts remain cautiously optimistic, others warn of a prolonged consolidation. CryptoWZRD noted a bullish close on the daily chart, suggesting a potential move toward $2.41 if XRP breaks above $2.28. Conversely, EGRAG CRYPTO pointed to a bearish divergence on shorter timeframes, cautioning that weakness below $2 could lead to sideways trading. As the market awaits the ETF launches, the coming weeks will be pivotal. A successful institutional influx could reignite bullish sentiment, but a breakdown below critical support levels may deepen the bearish narrative. For now, XRP traders are bracing for volatility, with the $2 level serving as both a psychological battleground and a technical inflection point.