XRP Struggles Despite ETF Inflows, Faces Potential Decline

XRP, the cryptocurrency associated with Ripple, is facing a challenging period despite significant inflows into exchange-traded funds (ETFs). As of November 27, 2025, XRP is trading at approximately $2.21, down from its mid-July peak of nearly $3.66. This decline raises concerns about the token’s ability to maintain support levels, particularly as it approaches price zones seen earlier in 2025.

The recent launch of the Spot-XRP ETF by Canary Capital on November 13 attracted considerable institutional interest, generating hundreds of millions of dollars in net inflows shortly after its debut. In total, newly launched XRP ETFs have accumulated over $400 million this month. Despite this influx of capital, the anticipated bullish momentum has not materialized. By November 22, XRP had dropped to around $1.83 during intraday trading, marking a notable decline in market sentiment.

Weak Momentum Amid Strong Inflows

Although institutional demand for XRP has surged, the token’s price continues to show weakness. Analysts have noted that the open interest in XRP derivatives remains elevated but unstable, indicating insufficient positioning to support a sustained price breakout. Currently, XRP is trading over 45% below its July peak, suggesting that market momentum is lacking.

Periods of low momentum typically lead to further corrections, especially when there are no clear catalysts for a price reversal. While ETF inflows are substantial, there is a growing concern that market participants may have anticipated more aggressive accumulation following multiple ETF launches. If these inflows begin to normalize, the support previously provided by ETF demand may diminish.

The $2 level is critical for XRP traders. Repeated tests of this support zone have raised concerns about its stability, and a clean break below this level could lead to a decline toward $1.90, a price point observed earlier in 2025.

Technical Outlook and Future Predictions

From a technical perspective, XRP is currently trading below key short-term exponential moving averages (EMAs), which indicates persistent selling pressure. Momentum indicators suggest a decrease in buying interest, and while oversold conditions can lead to short-term rebounds, the prevailing trend remains bearish unless there is a significant uptick in buying activity.

In April 2025, XRP primarily traded within the $1.90 to $2.00 range. Given the limited upward momentum and increasing market risks, a return to this price zone seems plausible, especially if ETF accumulation slows or broader market liquidity tightens.

Looking ahead, the performance of XRP will heavily depend on whether the critical $2.01 support holds and whether ETF demand can offset the prevailing market slowdown. If the support weakens and selling pressure persists, analysts predict that XRP could revisit lows near $1.60.

Investors should remain cautious as the market navigates these complexities. The current landscape reveals a dichotomy between strong institutional interest in XRP and the ongoing challenges that the token faces in maintaining its price stability.

In summary, while the influx of capital from ETFs signals confidence in XRP, the combination of weak momentum, fragile derivatives data, and a critical support level creates a precarious situation for the cryptocurrency.