XRP has spent the past week straddling rising institutional demand and stagnant prices, creating a zone of compression that traders say is becoming increasingly arduous to ignore.
Even as U.S. spot XRP ETFs near the $1 billion AUM milestone, the asset is still trading in a tight range, leaving market participants wondering whether prolonged consolidation is setting the stage for a bigger move.
The disconnect between inflows and prices has become one of the most essential topics of the week. Analysts note that while institutional capital continues to accumulate, the XRP chart remains muted, pointing to massive profit-taking following November’s gains and continued selling pressure on higher time frames.
XRP's price trends to the downside on the daily chart. Source: XRPUSD on Tradingview
ETF momentum increases as XRP prices decline
The price of XRP is hovering around $2.06, falling slightly despite consecutive days of ETF inflows. Analysts point out that immense holders likely sold them forcefully, offsetting up-to-date demand emerging through regulated products.
Despite this, XRP ETFs have outperformed Bitcoin ETFs in terms of relative inflow strength, indicating that institutions are positioning early.
Ripple CEO Brad Garlinghouse noted that XRP has become one of the fastest-growing U.S. cryptocurrency ETFs of the year, arguing that greater access through established investment accounts broadens the asset’s investor base.
Market reaction remains mixed, with some investors seeing ETFs as a stabilizing force, while others see them as limiting volatility to the upside.
Regulatory and structural changes add up-to-date variables
Beyond market flows, regulatory commentary brought attention to another level. Former SEC Chairman Paul Atkins highlighted tokenization as a practical path forward, emphasizing its benefits including increased transparency and faster settlement.
His comments sparked debate within the XRP community, particularly among those who argue that the XRP Ledger is well-positioned for enterprise-grade tokenization systems.
Meanwhile, Ripple’s recent $500 million equity round, structured with downside protection for Wall Street investors, confirmed how closely the company’s valuation is tied to its XRP holdings.
The funds have reportedly concluded that approximately 90% of Ripple’s net worth comes from the XRP vault, highlighting the token’s key role in the company’s long-term prospects.
The technical photo shows compression, not surrender
On the chartsXRP remains stuck between the $2.07 support level and the $2.18 and $2.30 resistance levels.
Analysts note that dynamics indicators are weakening, but the underlying demand is stable. If XRP breaks above these levels, a move towards Wave 3 targets near $2.73 becomes more likely, although failure to do so could result in another retest of lower support.
The price of XRP continues to fall, supported by some of the largest ETF inflows this year, but is restrained by steady selling and greater market caution. Whether this tension will subside upward or downward is the question that investors will be carrying over the next week.
Cover photo from ChatGPT, XRPUSD chart from Tradingview
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