XRP pulls back from resistance as ETF inflows clash with bearish market signals
XRP has retreated from the US$2.22 resistance zone despite strong institutional inflows into spot ETFs, leaving the cryptocurrency caught between bullish demand from major investors and renewed technical weakness.
XRP comes off resistance
At the beginning of December XRP has seen renewed institutional interest as spot-exchange-traded fund (ETF) inflows continue to gather strength, even as price action remains volatile and sentiment cautious.
According to recent data, XRP-linked ETFs have recorded a 13-day streak of positive net inflows, pushing total assets under management in those funds to nearly US$900 million - a sign that demand from larger investors remains alive despite broader market uncertainty.
That influx of capital has helped support some interim strength: XRP rose to around US$2.22 as bulls attempted to regain control of the near-term trend.
Yet the rally has run into resistance at US$2.22, with recent technical signals pointing towards further weakness. Should selling pressure mount or broader crypto-market risk-off sentiment re-emerge, XRP risks sliding toward prior support levels - notably near US$1.98.
Meanwhile, developments on the ecosystem front add deeper context beyond price swings. The company behind XRP, Ripple, has expanded its payments infrastructure in emerging markets: a recent partnership with RedotPay aims to roll out a “Send Crypto, Receive NGN” service, allowing verified users to send XRP and receive Nigerian naira — a move reinforcing XRP’s ongoing role in cross-border payments, especially in Africa.
These dynamics - rising ETF inflows, on-chain adoption via payments integration, and mixed technical signals - have resulted in a market that is cautiously optimistic.
Some analysts believe that if ETF momentum continues and broader confidence returns to risk assets, XRP could mount a more sustained recovery.
Others warn that unless resistance is decisively overcome, the token remains vulnerable to renewed downside, especially given the broader crypto-market uncertainty.
In short, over the last few weeks, XRP has balanced on a knife edge between renewed institutional demand and persistent technical headwinds.
Its near-term trajectory will likely depend on a combination of factors including ETF flows, macroeconomic sentiment, and the broader adoption of its payments infrastructure.
XRP bearish case:
Last week we stated that "while XRP remains below the 17 November high at $2.3025, medium-term downward pressure may take the cryptocurrency back towards the major $2.0807-to-$1.8193 support zone." This has now occurred with the upper boundary of this wide support zone being tested.
Failure there would have bearish implications and may put the April low at $1.6153 on the map.
XRP bullish case:
As long as XRP manages to find support within its key $2.0807-to-$1.8193 support area - made up of the mid-April-to-November lows (except the 10 October spike low) - another attempt at testing resistance around $2.22 may play out.
The early December high at $2.2196 would need to be exceeded for the 17 November high at $2.3025 to be reached, In turn, this level would need to be bettered on a daily chart closing basis for the 55-day simple moving average (SMA) at $2.3159 to be hit.
Short-term outlook: bearish while below the 3 December high at $2.2196
Medium-term outlook: neutral while trading below the 10 November high at $2.5801 but above its $1.8193 November low
XRP daily candlestick chart
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