XRP faced another challenging trading session, dropping 1% as the cryptocurrency extends its weekly decline to a concerning 11.2%. Despite significant institutional interest through exchange-traded funds, the digital asset continues to struggle against mounting selling pressure and deteriorating technical indicators.
The cryptocurrency’s performance reflects broader concerns about the sustainability of recent ETF-driven rallies, with market dynamics suggesting that institutional inflows may not be sufficient to offset the current bearish momentum that has persisted for several weeks.
ETF Inflows Fail to Provide Price Support
While institutional adoption through ETFs continues to show promise, the impact on XRP’s price action has been notably underwhelming. Canary’s XRPC ETF recorded substantial inflows of $25.4 million on November 18, demonstrating continued institutional appetite for XRP exposure.
Franklin Templeton’s newly launched EZRP ETF has accumulated assets under management exceeding $270 million, yet market response has remained muted. The disconnect between institutional inflows and price performance suggests that ETF approval may have already been priced into the market, following the classic “buy the rumor, sell the news” pattern.
The 40% decline from XRP’s all-time high of $3.65 reached in July highlights the severity of the current correction. Market participants are now closely monitoring XRPC inflow volumes as a critical indicator of whether institutional demand can eventually provide meaningful price support.
Profitability Crisis Intensifies Selling Pressure
Current market data reveals a troubling trend: only 58.5% of XRP holders remain in profit, marking the weakest level since November 2024. This deterioration in holder profitability represents a significant risk factor, as approximately 26.5 billion XRP tokens purchased at higher levels remain underwater.
According to Glassnode analytics, XRP inflows to exchanges have surged to 1.4 billion tokens, with projections suggesting potential price volatility within the next 60 days. This substantial exchange influx indicates distribution patterns rather than accumulation, creating additional downward pressure on prices.
Historical data suggests that elevated levels of underwater positions typically correlate with accelerated declines, particularly in the absence of new fundamental catalysts to shift market sentiment.
Technical Analysis Confirms Bearish Structure
XRP’s technical outlook has deteriorated significantly after breaking below the crucial $2.20 support level, which represented the 78.6% Fibonacci retracement. The cryptocurrency now trades below all major moving averages, confirming the dominant bearish trend structure.
Momentum indicators reinforce the negative technical picture. The Relative Strength Index (RSI) currently sits at 41.48, approaching but not yet reaching oversold territory, while the MACD indicator remains firmly in bearish territory, suggesting continued downward pressure.
Market attention has shifted to the critical $2.10 support level, which corresponds to July 2025 lows. A decisive close below this threshold could trigger further declines toward the psychologically important $2.00 level, potentially accelerating forced selling and creating additional volatility.
Alternative Opportunities Emerge
As XRP faces headwinds, alternative blockchain solutions are gaining attention. Bitcoin Hyper has positioned itself as a compelling Layer 2 solution specifically designed to enhance Bitcoin’s capabilities. The platform offers significantly faster transaction speeds and lower costs compared to the main Bitcoin network, making it attractive for decentralized applications, payment systems, and modern financial activities requiring seamless execution.
During periods when Bitcoin faces network congestion, solutions like Bitcoin Hyper provide positive alternatives that align with the crypto market’s search for new growth drivers. The platform attempts to build confidence through advanced technology including zero-knowledge proof systems and state verification mechanisms tied to Bitcoin’s Layer 1, ensuring that increased speed doesn’t compromise security.
Market Outlook and Key Levels to Watch
XRP remains under pressure from fading ETF momentum, weakening holder profitability, and deteriorating technical structure. While oversold conditions might generate short-term rebounds, the primary trend remains bearish until ETF inflows stabilize or Ripple introduces new fundamental catalysts.
The critical $2.10 support level represents the immediate line of defense for XRP bulls. A breakdown below this threshold could trigger accelerated selling toward the $2.00 zone, potentially creating a cascade of forced liquidations and further downward pressure.
For investors seeking quality projects during XRP’s current struggles, platforms like Bitcoin Hyper offer compelling alternatives with strong growth potential and real-world utility, particularly as the broader crypto ecosystem continues evolving toward more efficient and scalable solutions.