XRP News Today: XRP ETFs Gain Momentum as Long-Term Holders Retreat

XRP's price slid 7% in recent trading sessions, with technical indicators suggesting a potential move toward the $1.80 support level, a critical threshold for short-term market sentiment. The decline follows a period of volatility driven by mixed signals from institutional investors and evolving dynamics in the XRP ETF market. While the launch of new exchange-traded funds (ETFs) has injected liquidity into the asset class, shifting behavior among long-term holders and regulatory uncertainties have created a bearish undercurrent.

The 21Shares XRP ETF, set to debut on December 1 under the ticker TOXR, represents a significant milestone in institutional adoption. The European firm's product will hold physical XRP in secure custody, aligning with the model of Bitcoin and Ethereum ETFs, and aims to provide investors with direct exposure to XRP's price without the complexities of token storage according to Coinpedia. This entry follows a surge in XRP ETF inflows, which reached $666.61 million as of November 28, propelling the token's price upward by 12% in the preceding week. However, the same inflows have reduced exchange liquidity, raising concerns about price stability amid broader market corrections.

Despite the initial optimism, recent data reveals a shift in investor behavior. XRP ETFs recorded $643.92 million in net inflows during their first month, with daily contributions peaking at $243.05 million on November 14. Yet, the token's price has struggled to maintain gains, oscillating around $2.20 as of late November. Analysts attribute this to divergent trends among XRP holders: while short-term holders have been accumulating, long-term holders are increasingly offloading their positions. HODL Waves data shows that long-term holders sold approximately 84 million XRP by November 25, a 56% increase from November 23. This activity coincided with a sharp price drop from $2.22 to $1.96 in mid-November, signaling growing caution among larger stakeholders.

Technical analysis further underscores the bearish momentum. XRP's price tested the $1.80 support level in November, rebounding with a 20% rally to exceed $2.00. However, sustained recovery depends on breaking through key resistance levels between $2.40 and $2.50. Failure to do so could reignite a downtrend, with predictions suggesting a potential retest of $1.80 by year-end. On-chain metrics also highlight divergences: while DEX transaction volumes have risen, indicating speculative activity, the Net Unrealized Profit/Loss (NUPL) metric for long-term holders near 0.50 signals a "belief–denial" phase historically linked to price corrections according to Yahoo Finance.

Looking ahead, XRP faces a critical juncture. The 21Shares ETF's launch could bolster institutional demand, but its impact will hinge on broader market conditions and regulatory clarity. Analysts at Coinpedia project XRP could reach $26.50 by 2030 under a bullish scenario, though short-term volatility remains a risk. For now, the token's path depends on whether long-term holders continue to offload or stabilize their positions-a dynamic that could either confirm a deeper correction or catalyze a renewed upward trend.