While the broader cryptocurrency market experiences volatility and the Fear & Greed Index signals apprehension, XRP is demonstrating unexpected resilience by decoupling from the prevailing trend. The asset is reaping significant benefits from institutional interest, yet a critical battle over market direction is unfolding behind the scenes. Will newly launched ETFs propel the rally further, or will substantial profit-taking bring the upward momentum to a sudden halt?
Regulatory Milestone in the Middle East
Beyond speculative trading, the XRP ecosystem’s foundation continues to strengthen. The Ripple-affiliated stablecoin, RLUSD, recently surpassed a $1 billion market capitalization. Simultaneously, a significant regulatory development is generating optimism: the Abu Dhabi Global Market (ADGM) has now officially approved RLUSD as collateral for institutional transactions.
Market experts view this integration with traditional finance as a powerful endorsement of the network’s long-term utility. The combination of deep liquidity and a legally recognized infrastructure is positioned to sustainably increase transaction volume on the ledger.
Institutional Capital Floods In
The primary driver behind the current price action is institutional capital, which is currently providing stability around the $2.20 price level. Data confirms net inflows exceeding $164 million into XRP-focused investment products. All eyes are on the upcoming Monday, as the anticipated launch of the 21Shares XRP ETF has the potential to further accelerate demand.
Should investors sell immediately? Or is it worth buying XRP?
Earlier, products from Grayscale and Franklin Templeton absorbed nearly $644 million within their first trading month. These investment vehicles are systematically removing liquidity from the open market, creating fundamental buy-side pressure that supports the asset’s valuation. With a weekly gain of over 10%, XRP is impressively weathering broader market uncertainty.
Supply Squeeze Confronts Profit-Taking
On-chain metrics currently reveal a compelling tug-of-war. “Whales”—large-scale investors—capitalized on recent price highs by executing substantial sales, offloading approximately $190 million worth of XRP over the past 48 hours. This has made November one of the most significant distribution periods witnessed in years.
However, these sales are meeting an increasingly illiquid market: reserves on major exchanges like Binance have plummeted to multi-month lows. This suggests aggressive accumulation by other market participants—likely institutions securing inventory for their ETF offerings. If demand from new ETFs persists while exchange supplies remain constrained, this structural supply shock could ignite explosive upward volatility, even amid profit-taking by established whales.
The conclusion as the week closes is clear: XRP is caught in a power struggle between profit realization from long-standing major holders and intense purchasing pressure from new institutional investment channels.
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