The price of XRP continues to correct, having recently declined below the psychologically significant $2.00 threshold. This ongoing technical weakness, however, is being met with a notable divergence: institutional investment flows are signaling strong underlying demand even as retail sentiment sours.
Institutional Buyers See Opportunity in Dip
Professional market participants appear to be acting counter-cyclically. Despite a prevailing market mood of “Extreme Fear” that has prompted many smaller investors to realize profits, XRP-focused exchange-traded funds (ETFs) recorded inflows of approximately $82 million in the week ending December 19. Since their launch, these investment products have attracted over $1.1 billion in capital. This growing institutional interest against a backdrop of falling spot prices suggests long-term investors may view current levels as an attractive entry point.
Technical Picture Suggests Caution
Following its mid-year rally, XRP has entered a pronounced consolidation phase. The digital asset is currently trading at $1.86, having broken below a former support zone around $1.93. Market analysts warn of further downside potential, noting that a failure to hold immediate support at $1.80 could trigger a slide toward $1.62.
Should investors sell immediately? Or is it worth buying XRP?
The Relative Strength Index (RSI), a key momentum gauge, reads 28.8, placing it in oversold territory and hinting at the possibility of a short-term rebound. Nevertheless, the prevailing downward pressure is confirmed by XRP’s position roughly 12% below its 50-day moving average. Daily trading volume remains elevated at around $2.5 billion, indicating active participation despite the declining price trend.
Foundation Set for 2026 with Key Upgrades
Beyond price movements, the XRP Ledger (XRPL) demonstrates robust network health, having recently processed its 4 billionth transaction. Ripple is also preparing significant protocol upgrades slated for early 2026:
- Native Lending Protocol: Subject to validator approval, a new native protocol is scheduled for introduction in January 2026. This upgrade is designed to facilitate direct lending operations on the blockchain.
- Stablecoin Expansion: Plans are in place to broaden the reach of the USD-pegged stablecoin RLUSD in the first quarter of the year, aiming to enhance liquidity, particularly within Asian markets.
As 2025 draws to a close, XRP stands at a crossroads. While its fundamental outlook is bolstered by upcoming protocol innovations and sustained ETF inflows, the short-term technical correction remains the dominant theme. The defense of the $1.80 support level will be critical in the coming sessions to prevent a deeper retreat to $1.62 before the year ends.
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