XRP News Today: XRP ETF's Record Inflows Clash with Token's Bearish Struggle

XRP, the digital asset behind the Ripple protocol, has sparked renewed investor interest amid a broader crypto market slump, with analysts noting a potential bullish divergence as the first U.S. spot XRP exchange-traded fund (ETF) launched to record-breaking success. Despite a 4.3% price drop to $2.22 in the 24 hours following the ETF's debut, XRP's on-chain metrics and institutional inflows suggest a possible near-term bottoming process, according to market observers.

The Canary Capital XRP ETF (XRPC) shattered 2025 launch records, drawing $245 million in net inflows and $59 million in trading volume on its first day. This outperformed even Bitcoin and Solana ETFs, signaling strong institutional demand for regulated altcoin exposure. However, XRP's price action remained bearish, with the token struggling to reclaim key resistance levels above $2.24. The disconnect between ETF-driven optimism and price weakness has created a "textbook V-shaped reversal" in short-term trading patterns, per Coindesk's technical analysis.

Market structure data reveals growing fragility in XRP's supply dynamics. Glassnode reported that 58.5% of XRP's circulating supply is currently in profit, the lowest level since November 2024. This follows a broader crypto market selloff, with Bitcoin's decline below psychological support levels dragging altcoins lower. At the same time, smart money traders added $44 million in net long XRP positions over 24 hours, per Nansen data, highlighting a tug-of-war between panic-driven selling and strategic accumulation.

The ETF's in-kind creation model-allowing direct exchange of ETF shares for XRP tokens-amplified institutional participation without immediately reflecting in trading volume. Analysts like Nate Geraci noted this structural advantage, explaining the gap between XRPC's $250 million inflows and its $58 million trading volume. Yet macroeconomic headwinds persist: Bitcoin ETFs saw $866 million in outflows on the same day, marking the second-worst outflow day on record.

Technical indicators paint a mixed picture. XRP's 50-day, 100-day, and 200-day moving averages all trend downward, with the price failing to reclaim the 50-day MA in early November. Critical support sits near $2.16 (a 0.382 Fibonacci retracement level), with breakdown below this threshold risking a cascade to $1.88. Conversely, a sustained recovery above $2.24 could reignite bullish momentum, though analysts caution that broader market sentiment remains "trapped in a medium-term downtrend".

Market participants are divided on the implications. While some view the ETF's success as a catalyst for long-term adoption, others warn of "speculative flows" driving short-term volatility. TheStreet reported that "big money" whales exited XRP positions ahead of the ETF launch, dumping roughly $28 million in derivatives liquidations within 24 hours. This contrasts with retail and institutional buyers "fishing for bottoms" near $2.22, according to Coindesk's on-chain analysis.

As XRP navigates this inflection point, all eyes turn to the SEC's regulatory framework for crypto ETFs and broader risk-on sentiment. The token's ability to stabilize above its recent capitulation low of $2.22 will be crucial, with failure to hold this level exposing it to further declines toward $2.02. For now, the XRPC ETF's historic debut underscores both the asset's institutional appeal and the volatile nature of a market still grappling with macro uncertainty.