XRP Falls Amidst Institutional Demand, Retail Selloff
Ripple (XRPUSD) fell to $2.15 in the cryptocurrency market on Wednesday amidst expectations that the US Federal Reserve will axe fed rate by 25 basis points next week.
The price slump has created a new entry point for some investors seeking to bet on the token as instructional demand continues to improve, a growing catalyst for crypto asset re-rating.
The token has lost 0.77% over the last hour due to sell pressures and a decline in trading volume. XRP faces conflicting forces: bearish technicals and ETF-driven institutional demand.
XRP ETFs saw $50.27 million in daily inflows on Dec 3, with total assets under management totalling $906 million, but prices dipped as traders sold into strength. The Canary ETF’s $243 million debut outperformed LINK/SOL ETFs but faced “sell the news” pressure.
Institutions are accumulating via ETFs, but retail traders are booking profits. Meanwhile, the $1.90-$2.20 zone will test whether supply scarcity or macro crypto weakness dominates. The token market value inched lower to $130 billion on 3.26 billion trading volume in the crypto market.
The token trades at $2.15, a 30% price depreciation in 60 days, as whale wallets accelerate transfers with technical data showing XRP below key support.
A break below $2 could trigger cascading liquidations, while reclaiming $2.25 might force shorts to cover, crypto analysts said while interpreting its trading signals.
Reflecting a potential uptrend, institutional adoption of XRP surges as $1.2 billion in investments enhance its role in global finance, driven by regulatory clarity and UK recognition.
This action has positioned XRP as a powerful asset with legal protection and heightened market confidence. Market reports revealed that XRP Ledger exhibits strong growth with over 40,000 transactions and increased activity, signifying a vibrant and expanding network.
Earlier in the week, Bitwise, Greyscale, and three other firms launched U.S. spot XRP ETFs, collectively attracting $824 million in 30 days. These ETFs can’t source XRP from Ripple’s escrow, intensifying competition for the 2.7 billion tokens on exchanges.
Ripple secures an expanded MPI license in Singapore to support XRP in regulated digital payment transactions, marking a crucial step in global market adoption.
XRP’s dip stems from post-ETF profit-taking, weak technicals and crypto-wide risk-off sentiment. While ETF inflows signal institutional interest, retail traders are cashing out amid broader market caution. Dangote Cement Gains 10% in Fresh Rally
