XRP is confronting a pivotal moment as it struggles to maintain its position above the crucial $2 threshold. Despite the recent introduction of three exchange-traded funds focused on the digital asset, the anticipated price surge has failed to materialize, leaving investors questioning whether the cryptocurrency can avoid a significant downward move.
Institutional Selling Pressure Intensifies
The market has witnessed substantial selling activity from major holders, creating significant headwinds for XRP’s price stability. Within a mere 48-hour window, large investors disposed of approximately 200 million XRP tokens. This selling pressure was highlighted by a single whale transaction valued at $716 million, revealing the fragility of current price levels between $2.20 and $2.30.
Trading volume data further underscores the deteriorating market sentiment, with daily activity plunging 33.85% to $4.76 billion. This substantial decline indicates waning investor interest at a critical technical juncture for the digital asset.
ETF Disappointment Amid Regulatory Pipeline
The recently launched Canary XRP ETF has declined more than 10% since its inception, contradicting expectations that new fund products would inject bullish momentum into the market. This underwhelming performance comes despite a promising regulatory backdrop, with nine additional XRP ETF applications currently awaiting approval.
Should investors sell immediately? Or is it worth buying XRP?
Analysts project these pending funds could potentially attract between $5 and $7 billion in new capital by 2026, representing a significant opportunity for the embattled cryptocurrency once regulatory hurdles are cleared.
Technical Indicators Flash Warning Signals
Market technicians are closely monitoring XRP’s interaction with key support levels between $2.10 and $2.15. A decisive break below the psychologically important $2 mark could potentially trigger further declines toward the $1.60 to $1.80 range.
While the Relative Strength Index reading of 28.8 suggests the asset is in oversold territory, this technical indicator provides no assurance of an imminent recovery. The current weakness contrasts sharply with XRP’s longer-term performance, which still shows a 97.78% price appreciation over the past year.
As nervous investors watch price action around the critical $2 level, the central question remains whether this support will hold or if XRP is poised for another leg down in its valuation.
Ad
XRP Stock: Buy or Sell?! New XRP Analysis from November 19 delivers the answer:
The latest XRP figures speak for themselves: Urgent action needed for XRP investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from November 19.
XRP: Buy or sell? Read more here...
