XRP News Today: XRP ETFs Trigger Liquidity Squeeze, Sparking Price Volatility Amid Supply Battles

The recent launch of XRP-focused exchange-traded funds (ETFs) has sparked a pivotal shift in the altcoin's market dynamics, with analysts and market participants closely watching how institutional inflows and supply adjustments could reshape the token's trajectory. Despite a 48-hour sell-off of 200 million XRP by large holders-driven by ETF-related profit-taking-the asset has seen a surge in institutional demand, with over $778 million in assets under management (AUM) across four spot XRP ETFs as of Nov. 24. This includes $67.4 million for Grayscale's GXRP and $62.6 million for Franklin Templeton's XRPZ, which debuted with a 0.19% fee waived on the first $5 billion in assets. The rapid absorption of nearly 80 million tokens by ETFs outpaced Solana's ETF debut, establishing XRP as the leading altcoin in institutional adoption.

The ETF-driven demand has created a structural supply squeeze, with 41.5% of XRP's circulating supply still in loss-despite a price of $2.15-highlighting the dominance of late buyers and fragility of the current market. Analysts caution that meaningful price recovery may hinge on sustained inflows rather than one-time demand spikes. Diana, a crypto analyst, outlined a bullish model projecting XRP could reach $24 within 60 days of an ETF launch under scenarios with 20 ETFs and $900 million in inflows. Her model hinges on ETFs locking up circulating supply, creating a "liquidity squeeze" that could drive upward price pressure. However, current realities fall short of these projections: XRP trades around $2.14, with early ETF buyers often taking profits quickly, and institutional capital entering in phases rather than all at once.

Regulatory clarity has also reshaped the landscape. The SEC's 2025 ruling that secondary-market XRP sales are not securities removed a key legal overhang, enabling banks and payment providers to adopt Ripple's solutions without prior constraints. This shift, combined with aggressive fee waivers from ETF issuers, has accelerated institutional interest. Franklin Templeton's XRPZ and Grayscale's GXRP, for example, have attracted $422 million in combined inflows, with XRP's price rebounding above $2.05 amid growing futures open interest.

Yet challenges persist. The market remains top-heavy, with 68% of XRP supply controlled by large holders, and risks include lower-than-expected ETF inflows, regulatory delays, or macroeconomic volatility. Technical indicators show mixed signals, with XRP forming a bullish flag but remaining below key EMAs. While some experts predict a 2026 price surge driven by ETF maturation, others warn that short-term volatility and "buy the rumor, sell the news" dynamics could test the asset's resilience.

Backtest the performance of buying XRP with RSI Oversold, sell at RSI Overbought, from 2022 to now.