XRP News Today: XRP Clings to $1.88 as ETF Inflows Battle Macro Headwinds

XRP Hovers Near $1.88 Amid ETF Inflows and Macroeconomic Uncertainty

XRP (Ripple) traded near $1.88 on Tuesday, December 22, 2025, reflecting a market in flux as traders balanced renewed optimism in spot XRP ETF inflows against persistent macroeconomic volatility. The token had seen a sharp pullback earlier in the week to the mid-$1.70s before bouncing back, but it remained below the key psychological level of $2.00. According to data, XRP had rebounded to $1.88 amid continued ETF inflows.

Recent data showed U.S. spot XRP ETFs continuing to attract steady inflows, with combined assets under management reaching roughly $1.2 billion by mid-December. This marked a significant shift in institutional and retail demand, even as broader market conditions remained uncertain.

The tug-of-war between macro-driven risk-off sentiment and growing institutional interest has defined XRP's recent price action. Traders are now watching whether these ETF inflows can help XRP reclaim the $2.00 level or if macroeconomic pressures will continue to cap rallies. According to analysis, XRP's 2025 performance was mixed despite ETF inflows and SEC victories.

Why the Standoff Happened

XRP's struggle to break above $2.00 has been shaped by a combination of macroeconomic factors and internal market dynamics. U.S. inflation data has remained a focal point, with the November CPI report showing headline inflation at 2.7% year-over-year. While this represented a softening trend, uncertainties around data quality due to the recent government shutdown have muddied the interpretation for traders. According to reports, XRP's price action was influenced by inflation uncertainty.

Further complicating the situation, New York Fed President John Williams emphasized that there was no urgent need for another rate cut, citing the need for more data. This cautious stance has kept risk assets on edge, as clarity around monetary policy remains elusive. According to statements, Williams' position has reinforced risk-off sentiment.

Global financial conditions also tightened slightly after the Bank of Japan raised its short-term policy rate to 0.75%, reinforcing the theme that rate cuts are not a given across all major economies. Tightening monetary conditions have historically increased de-risking behavior, especially in higher-beta assets like XRP.

According to analysis, the rate hike contributed to a recent wave of selling.

What This Means for Investors

For XRP holders, the key variables to monitor include the continuation of ETF inflows and the potential for macroeconomic clarity to stabilize risk appetite. U.S. spot XRP ETFs, such as 21Shares' TOXR and Grayscale's GXRP, have continued to see strong demand, with cumulative net inflows reaching $1.06 billion. According to reports, ETF demand has been strong despite some on-chain concerns.

However, XRP's price remains vulnerable to selling pressure from large holders. On-chain data has shown that whale activity dominates exchange inflows, with many of these movements interpreted as signs of selling into strength. This dynamic has limited the upward momentum that ETF demand alone might have generated.

The launch of additional institutional infrastructure, such as CME Group's spot-quoted XRP futures, has also expanded the ways in which investors can gain exposure. These products provide more tools for hedging and position management, which can indirectly support price stability by improving market depth.

Risks to the Outlook

Despite the positive ETF narrative, several risks remain. One of the most immediate is the continued presence of macroeconomic uncertainty. Inflation expectations and Federal Reserve messaging will continue to influence risk-on/risk-off sentiment, and any reversal in the current easing trajectory could trigger renewed selling in XRP and other crypto assets.

Additionally, while ETF inflows have been a source of optimism, they do not automatically translate into sustainable price gains. Some analysts have raised concerns that ETF accumulation could lead to a future supply shock if large holders continue to offload their holdings while institutional demand remains steady.

Exchange balances have also been a point of focus for traders. Binance, for instance, has seen a decline in XRP reserves, which is often interpreted as a sign of holders moving coins off exchanges-potentially to cold storage. This trend could reduce immediate selling pressure and support a near-term rebound, but it is not a guarantee of a sustained rally.

Traders are also watching technical levels closely. The $1.80–$1.83 range has acted as a support zone in recent sessions, and a break below this area could trigger further selling. Conversely, a successful breakout above $2.00 could help reframe the narrative and attract more bullish sentiment.

The market for XRP is evolving, but it remains sensitive to both macroeconomic and institutional factors. While regulatory clarity has improved and institutional access is expanding, these developments alone cannot insulate XRP from broader financial market forces. Investors must weigh the potential for ETF-driven demand against the risks posed by macroeconomic uncertainty and internal selling pressure.