XRP News Today: XRP ETFs Hit $1.18B as Price Breaks Below $1.93 Support

Ripple's XRP has come under pressure in recent weeks, with its price struggling to break above key resistance levels. Institutional investors, however, remain bullish, with XRP spot ETFs recording 30 consecutive days of net inflows as of December 16. The ETFs now hold about $1.18 billion in assets under management, showing persistent demand despite a drop in the spot price. This divergence between ETF flows and market price has sparked concern among retail traders and analysts.

The price of XRP has fallen below $2.00, hitting a multi-week low near $1.88 before bouncing back slightly. Technical indicators suggest a breakdown in short-term momentum, with XRP now trading below the $1.93 Fibonacci level and key moving averages. Analysts warn that if the price fails to reclaim $1.93, further downside could follow, potentially pushing XRP toward the $1.00 level. The recent drop has also raised questions about whether the

market is preparing for a larger correction.

XRP's ETF performance contrasts sharply with that of Bitcoin and Ethereum, which have seen intermittent outflows due to macroeconomic pressures. Ripple CEO Brad Garlinghouse has highlighted the ETFs' sustained inflows as a sign of institutional confidence in XRP's utility within the global payment infrastructure according to reports. The CEO has also pointed to growing adoption in enterprise solutions and cross-border transactions as drivers of long-term demand for the asset. For now, the ETF inflows suggest strategic accumulation rather than speculative trading.

Why the Standoff Happened

The recent price drop came after a failed breakout attempt above the $2.00 level. XRP's price fell 2.6% in a 24-hour period, breaking below the $1.93 Fibonacci level, a key technical threshold. The breakdown was confirmed by heavy trading volume, indicating active selling pressure. Analysts warn that if the price fails to reclaim $1.93, further downside could follow, potentially pushing XRP toward the $1.00 level.

Retail selling appears to be a major factor in the underperformance of XRP's spot price. Despite $1 billion in ETF inflows, public selling has offset much of the buying pressure. Market makers may also be contributing to the decline by shorting XRP on derivatives markets to hedge against potential price drops. This hedging activity adds downward pressure on the price, exacerbating the bearish setup.

What Analysts Are Watching

Analysts are closely monitoring key support and resistance levels for signs of a potential reversal. The $1.93 level is now critical, as a successful recovery above this zone would indicate renewed buyer interest. If XRP fails to reclaim this level, the next area of interest lies between $1.88 and $1.90 according to technical analysis. A sustained break below this support could expose deeper selling levels and trigger further downward momentum.

On the other hand, some analysts remain cautiously optimistic about XRP's medium-term prospects. Trader Niels and ChartNerd believe XRP is following a familiar pattern seen in 2023-2024, with consolidation likely before another markup phase. XRP is currently within a range that mirrors its earlier accumulation period, suggesting a similar breakout could occur in late 2026. The key for investors is whether XRP can maintain its current support and avoid a breakdown in structure.

Risks to the Outlook

While ETF inflows signal long-term confidence in XRP, the short-term bearish trend remains intact. The price is currently locked in a descending channel, trading below all major moving averages. The 20, 50, and 100 EMA levels all sit above $2.00, creating a ceiling for price action. Until XRP can break above $2.17, a key resistance zone, it will remain constrained by bearish momentum.

The risk of a supply shock is also growing as more XRP flows into ETFs. A larger portion of the circulating supply is becoming locked away in custodial structures, potentially tightening market conditions over time. If spot demand stabilizes or increases, the imbalance between supply and demand could lead to a sharp revaluation in the price. However, this scenario is still speculative and depends on the continuation of ETF inflows and broader market conditions.

What This Means for Investors

For investors, the current price action and ETF performance highlight a complex market dynamic. Institutional buying continues to push XRP toward a more mature asset class, while retail trading behavior remains volatile. The divergence between ETF flows and spot price indicates a deeper disconnect in market sentiment, which could shift rapidly if key levels are breached.

Investors should closely monitor the $1.93 level for signs of strength. A successful recovery could signal the start of a consolidation phase before the next move. However, a breakdown below $1.92 would increase downside risk, with potential targets at $1.88 and beyond. Stop-loss levels are often placed just below $1.80, where structural support and channel boundaries converge. The key takeaway for market participants is that XRP remains in a critical phase, with both ETF inflows and technical breakdowns shaping its near-term trajectory.