XRP News Today: XRP Pressured Below $2.00 as ETF Inflows Fail to Spark Rally

XRP entered the final weeks of 2025 under intense technical pressure, with its price struggling to break above the $2.00 threshold. Traders have been closely watching the asset's consolidation between $1.88 and $1.91, a range that marks a near-50% drop from its July high of $3.67. The broader crypto market remains in a risk-off sentiment, with XRP's price action reflecting a tug-of-war between institutional accumulation and distribution by long-term holders according to market analysis.

Despite the resolution of the SEC lawsuit earlier this year and the launch of U.S. spot XRP ETFs in November, the token has shown little ability to build sustained momentum. Analysts attribute this to year-end de-risking behavior, as traders engage in profit-taking and tax-loss harvesting. The psychological $2.00 level has become a focal point, with its failure to hold opening the door to further downward retracements according to market data.

Recent on-chain data reveals a decline in network activity, with daily active addresses on the XRP Ledger dropping to just under 3,500 from over 13,000 in November. At the same time, large wallet holders continue trimming their positions, raising concerns about the token's organic utility and long-term demand. This trend contrasts with the robust net inflows into XRP ETFs, which have exceeded $80 million in a single week according to financial reports.

Why the Standoff Happened

The current standoff for XRP stems from a confluence of technical and market dynamics. The token is now trading near the lower boundary of a long-term descending channel, a pattern that suggests continued bearish pressure. Technical resistance blocks loom over key levels, with the most immediate hurdle sitting between $1.93 and $1.95. If bulls fail to overcome this level, the path could open to the $1.80 support area. A breach below that could expose the asset to even deeper losses, potentially testing the April lows near $1.62 or the October flash-crash support at $1.25 according to market analysis.

Institutional investors have continued to flow into XRP through ETFs, with cumulative net inflows now surpassing $1.1 billion. These funds are increasingly being viewed as a proxy for XRP's growing institutional acceptance, even as retail demand wanes. The $1.98 20-day exponential moving average and the $2.07–$2.25 resistance block remain critical psychological levels for the bulls according to technical indicators.

How Markets Reacted

Market reactions to XRP's price movements have been mixed, with broader macroeconomic trends playing a significant role. The U.S. Federal Reserve's shifting stance on interest rates and global economic uncertainties have kept crypto markets in a cautious mood. XRP's price has been caught in a broader risk-off environment, with Bitcoin itself struggling to break above $88,000. The token's year-to-date decline of 13% has underperformed some expectations, particularly given the landmark SEC settlement and ETF approvals according to comprehensive analysis.

The XRP ETFs have emerged as a bright spot for the asset, drawing in steady institutional demand even as spot price action weakens. Franklin Templeton's XRPZ ETF, for example, now holds over 101 million XRP tokens, valued at approximately $192.68 million according to market data. Meanwhile, on-chain data suggests that whale wallets continue to trim their holdings, indicating a lack of confidence in near-term price recovery according to financial reports.

What Analysts Are Watching

Analysts are closely monitoring several key factors that could influence XRP's path in the coming months. One major focus is the balance between ETF inflows and spot selling pressure. While ETFs have added over $1 billion in assets under management, this capital is being offset by distribution from large holders and retail profit-taking. A shift in this dynamic could signal a turning point for the asset according to analyst reports.

Technical indicators also remain a focal point. The daily RSI for XRP-USD is currently between 39–41, firmly in bearish territory but not yet oversold. This suggests there is room for further downside before momentum could begin to exhaust. On longer timeframes, the Stochastic RSI has reached an extreme low, similar to levels seen in late 2022, which some analysts see as a potential sign of exhaustion according to technical analysis.

Looking ahead, XRP's potential for recovery in 2026 will hinge on several factors. Ripple's planned expansion of Ripple USD (RLUSD) in Japan and the development of institutional-grade lending products on the XRP Ledger could help anchor the token to more practical financial use cases. These developments are expected to provide structural support independent of short-term price volatility according to market analysis.

Risks to the Outlook

Despite growing institutional interest, several risks could delay or prevent a meaningful XRP rebound. Continued macroeconomic uncertainty, particularly around Fed policy and global growth, could prolong the risk-off sentiment currently affecting the broader market. Without a clear shift in macro conditions, XRP may remain vulnerable to further retracements, especially if the $1.80 support level fails according to economic analysis.

Another risk is the ongoing decline in network utility. The XRP Ledger's transaction throughput remains strong, but the drop in daily active addresses signals a slowdown in organic user growth. If this trend continues, it could undermine the long-term fundamentals that justify higher valuations for the token according to technical analysis.

Lastly, the current market structure suggests that ETF inflows are being more than offset by selling pressure elsewhere in the ecosystem. While this could eventually lead to a supply shock that favors price recovery, the timing and magnitude of such an event remain uncertain according to market reports.

What This Means for Investors

For investors, the current XRP landscape presents a complex set of signals. Short-term traders are likely to remain cautious, given the asset's volatility and the risk of further declines. However, the growing institutional allocation via ETFs and the potential for structural developments in 2026 offer a more optimistic outlook for long-term holders.

Investors should also be mindful of the disconnect between ETF inflows and spot price action. While strong capital flows into XRP ETFs indicate growing institutional confidence, they have not yet translated into a sustained rally in the spot market. This divergence may persist for some time, particularly in the absence of a broader risk-on environment according to market analysis.

As the year-end de-risking phase continues, XRP's path will depend on whether it can break above key resistance levels and stabilize its network utility. Until then, investors are likely to remain on the sidelines, waiting for clearer signs of momentum reversal according to comprehensive analysis.