XRP News Today: XRP ETFs Signal Long-Term Hope as Short-Term Bearishness Deepens

The XRP market is grappling with renewed weakness, with open interest collapsing to its lowest level since November 2024 amid broader crypto outflows and bearish sentiment. Despite the recent launch of multiple spot XRP ETFs, which were heralded as catalysts for institutional adoption, the token has struggled to gain traction, falling below the key $2 psychological level.

Bitwise and 21Shares joined a growing list of firms offering spot XRP ETFs in the U.S., with Bitwise's product debuting on the NYSE on November 20. The ETF recorded $22 million in first-day trading volume, a strong start for a new product. However, XRP's price dropped over 7% on the same day, reversing gains many had anticipated from the ETF's approval. Whale selling activity, including the offloading of 200 million XRP tokens, compounded downward pressure.

Regulatory hurdles had long delayed XRP ETFs, but approvals from the SEC and exchanges like NYSE Arca have now cleared the way for products from Franklin Templeton, Grayscale, and others. Analysts argue these instruments could eventually attract institutional capital, but immediate market dynamics have overshadowed that potential. "The ETF is a step toward mainstream adoption, but short-term price action remains tied to macro sentiment and whale behavior," one expert noted.

Derivatives data paints a grim picture for XRP. Open interest on Binance, the largest trading platform by volume, has plummeted to $473 million-the lowest since November 2024. This decline reflects a broader liquidity drain as traders unwind both long and short positions. Negative funding rates on exchanges further indicate waning bullish confidence, with sellers dominating the market.

CoinShares' latest report underscores the trend: crypto funds saw $1.94 billion in weekly outflows, with XRP being one of the few assets to attract inflows ($89.3 million) amid Bitcoin and Ethereum outflows. However, this contrast has not translated into sustained price recovery. "XRP's fundamentals remain strong, but derivatives markets lack conviction," a CryptoQuant analyst said.

Technically, XRP has failed to reclaim critical support levels, with its price hovering below $2.20 and key moving averages sloping downward. On-chain metrics show that 41.5% of XRP's supply is now in a loss, a structural red flag for a market dominated by late buyers. Social sentiment, while slightly improved, remains bearish, with retail traders wary of further declines according to data.

Ripple's infrastructure investments and a $1 billion treasury plan have drawn optimism, but these efforts have yet to offset immediate selling pressure. Whale accumulation of $7.7 billion in XRP over three months suggests long-term confidence, yet short-term volatility persists.

While the immediate outlook remains uncertain, some analysts believe the ETFs could lay the groundwork for future inflows. "History shows that initial ETF launches take time to attract institutional capital," said James Seyffart, an ETF analyst. Grayscale and Franklin Templeton's upcoming ETFs may further diversify XRP's investor base, but meaningful adoption is likely months away.

For now, XRP traders face a delicate balance between short-term bearish momentum and long-term structural potential. With open interest near historic lows and funding rates negative, the market is bracing for further consolidation-or a decisive breakout.

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