XRP News Today: XRP ETF Investments Rise While Derivatives Withdrawals Highlight Market Vulnerability

XRP Faces Intense Volatility Amid Institutional Activity

XRP underwent a significant price fluctuation, marked by an abrupt 30% overnight drop and a wave of unusual $0 liquidations in the derivatives market. This turbulence emerged as institutional interest in the token clashed with strong selling pressure from large holders. Data from CoinGlass revealed that over $1.14 million in liquidations—mainly from long positions—were triggered during this sharp decline.

Despite the launch of two XRP exchange-traded funds (ETFs) on NYSE Arca by Franklin Templeton and Grayscale, which attracted $164 million in inflows, the token’s price failed to stabilize. The disconnect between institutional purchases and price movement exposed vulnerabilities in the market, especially after whales offloaded 200 million XRP following the ETF debut, intensifying the downward trend.

After plunging to $2.02, XRP managed a brief recovery to $2.19, suggesting that buyers stepped in near the $2.00 support level. However, the overall outlook remains negative: XRP is still trading 40% below its yearly high and remains under key moving averages. Technical analysis points to a break below a descending channel and the formation of a rising wedge, while the CryptoQuant Bull Score Index sits at a bearish 20 out of 100. Meanwhile, Ripple’s stablecoin RLUSD saw its 30-day transaction volume climb by 56% to $3.5 billion, signaling increased activity within the XRP ecosystem.

Liquidity imbalances across major exchanges further complicated the situation. Both MEXC and Binance processed over $1.7 billion in XRP spot volume, becoming hotspots for cascading liquidations. Binance’s long-to-short ratio of 2.55:1 highlighted the risk faced by leveraged long traders, many of whom were forced out during the selloff. These market events unfolded alongside Hive Digital Technologies’ expansion of a data center powered by 90% renewable energy, reflecting broader shifts in the crypto industry toward AI infrastructure.

Visualizing Market Turbulence

The accompanying chart illustrates the dramatic swings and competing forces shaping XRP’s recent price action.

Outlook and Analyst Perspectives

XRP’s future direction hinges on whether trading volumes can stabilize and if the tension between ETF inflows and derivatives outflows can be resolved. While Franklin Templeton and Grayscale’s ETFs have attracted $622 million in assets—just 0.5% of XRP’s total market capitalization—this is modest compared to Bitcoin and Ethereum, whose ETF allocations stand at 6.54% and 5.5%, respectively.

• Some analysts anticipate a potential rebound toward $2.60 if buyers continue to accumulate at oversold RSI levels.
• Others caution that a renewed test of the $2.00 support could occur if outflows from derivatives persist.

Technical indicators, including the RSI moving into oversold territory, will be crucial in determining whether a price reversal is on the horizon.

As the debate between bullish and bearish outlooks unfolds, investors remain attentive to XRP’s ability to hold onto its recent gains and navigate the ongoing volatility.