XRP will face crucial decisions as its defense ETF accumulates $1.1 trillion

During times of widespread volatility in the crypto market, XRP is undergoing a transition phase. Although the daily chart maintains a bearish inclination, underlying dynamics suggest something different: while the price struggles to find direction, institutional funds continue to steadily flow into the XRP ETF traded in the United States, which has already surpassed the $1.1 trillion in assets under management mark. This contrast between short-term technical pressure and sustained long-term capital inflows paints a more complex picture than a simple downward continuation.

The XRP ETF emerges as an institutional defense against volatility

The rise of the XRP spot ETF in the U.S. market represents an unprecedented milestone for the cryptocurrency. With approximately $1.18 trillion in total assets and net inflows recorded in nearly every trading session since its launch in mid-November, the product has accumulated nearly $1 trillion in flows. What’s notable is that this occurs in a global risk-off environment and with crypto prices in correction. This defensive ETF reflects a shift in institutional behavior: investors prioritize regulated custody, conventional access, and regulatory compliance over immediate speculative gains. Unlike Bitcoin and Ethereum ETFs, which have experienced capital outflows during the same period, XRP remains attractive to long-term asset allocators.

Technical indicators reveal gradual weakening of bearish pressure

Analysis of the daily chart shows that, although XRP continues to trade below its short-term exponential moving average, the intensity of selling is diminishing. The declines are no longer sharp and impulsive; instead, a smoother trend is observed, typically indicating phase transitions. The MACD remains negative, confirming the bearish context, but its momentum curve is flattening, indicating that selling strength is not intensifying. The RSI (Relative Strength Index)(, after reaching oversold territory, has begun to recover slightly. Although still below neutral, this movement suggests panic liquidation is easing and sellers are becoming more selective. This behavior often precedes consolidation phases or corrective rebounds.

Price battles at key resistance and support levels

The $2.1062 zone represents the immediate resistance, coinciding with the previous breakout and the descending moving average. A daily close above this level would signal significant structural improvement and a recovery of bullish momentum. Additional resistances are located at $2.1442 and $2.1598, where sellers have actively intervened. On the defensive side, the support near $1.7963 acts as a dividing line between healthy consolidation and the risk of a new structural decline. As long as the price remains above this zone, XRP maintains stabilization capacity. A clear breakdown below this level could reactivate stronger bearish impulses and alter market sentiment. The current price of $2.07 places XRP in an intermediate territory, dependent on confirming signals.

Order book dynamics: buyers and sellers in fragile balance

Deep liquidity analysis reveals market intentions more clearly. Buy orders concentrated below current levels indicate that buyers are actively defending the market, slowing potential declines. This liquidity acts as a volatility buffer. In contrast, sell orders clustered around the psychological level of $2 explain why rebounds face resistance. For XRP to advance to higher levels, continuous absorption of this selling pressure is required; if it occurs, liquidity reduction could allow accelerated moves toward higher resistances.

Trading strategies in a context of indecision

For bullish traders, waiting for confirmation remains prudent. Looking for sustained breakouts of key resistances or continued defense of strong buy zones provides better entry points. Closing long positions near upper resistances mitigates reversal risk. For bearish positions, as long as XRP trades below its daily moving average, short strategies remain valid on rebounds toward sell zones. However, with bearish momentum weakening, future declines may lack the strength seen at trend initiation. Risk management and timing become critical.

The XRP dilemma: technical pressure versus institutional demand

The cryptocurrency faces a crossroads. Technically, the daily chart does not yet confirm a bullish reversal, but silent accumulation via defensive ETFs suggests long-term demand is forming. Resolving this contradiction—between immediate technical pressure and institutional allocation demand—will likely determine XRP’s next significant move. The coming days will be decisive in defining whether the consolidated structure evolves toward recovery or confirms a more prolonged bearish scenario.