XRP News Update: XRP ETFs See Increased Interest While Long-Term Investors Step Back

XRP Price Faces Pressure Amid Market Uncertainty

Recently, XRP experienced a 7% drop, with technical signals pointing toward a possible decline to the $1.80 support zone—a level seen as crucial for short-term investor confidence. This downturn comes after a stretch of heightened volatility, influenced by shifting institutional sentiment and changing trends in the ETF landscape.

The introduction of new exchange-traded funds (ETFs) has brought additional liquidity to the market. However, changing patterns among long-term holders and ongoing regulatory ambiguity have contributed to a bearish tone for XRP.

21Shares XRP ETF: A Step Forward for Institutional Adoption

On December 1, the 21Shares XRP ETF, trading under the ticker TOXR, is set to launch, marking a significant move toward greater institutional involvement. This European ETF will physically hold XRP in secure storage, following the model established by Bitcoin and Ethereum ETFs. The goal is to offer investors direct price exposure without the need to manage token custody, as highlighted by Coinpedia.

This launch comes on the heels of a notable surge in XRP ETF inflows, which reached $666.61 million by November 28. This influx helped drive a 12% price increase for XRP in the preceding week. However, the same inflows have also reduced liquidity on exchanges, raising questions about price stability as the broader market faces corrections.

Investor Behavior Shifts as Price Volatility Persists

Despite initial enthusiasm, recent figures show a change in how investors are approaching XRP. In the first month, XRP ETFs saw net inflows of $643.92 million, with daily contributions peaking at $243.05 million on November 14. Yet, the token has struggled to hold onto gains, hovering near $2.20 by late November.

Analysts point to diverging actions among XRP holders: short-term investors are accumulating, while long-term holders are increasingly selling. HODL Waves data reveals that by November 25, long-term holders had sold about 84 million XRP—a 56% jump from just two days earlier. This sell-off coincided with a sharp price fall from $2.22 to $1.96, indicating growing caution among major stakeholders.

Technical and On-Chain Signals Highlight Bearish Risks

Technical analysis confirms the current bearish momentum. XRP tested the $1.80 support level in November before rebounding by 20% to surpass $2.00. However, a sustained recovery depends on breaking through resistance between $2.40 and $2.50. If XRP fails to clear these levels, analysts warn of a possible return to $1.80 before year-end.

On-chain data adds further nuance: while decentralized exchange (DEX) trading volumes have increased—suggesting heightened speculation—the Net Unrealized Profit/Loss (NUPL) metric for long-term holders is near 0.50. This level is typically associated with a "belief–denial" phase, which has historically preceded price corrections, according to Yahoo Finance.

What Lies Ahead for XRP?

XRP stands at a pivotal moment. The debut of the 21Shares ETF could attract more institutional interest, but its ultimate effect will depend on broader market trends and regulatory developments. Coinpedia analysts forecast that XRP could climb as high as $26.50 by 2030 in a bullish scenario, though short-term price swings remain a significant risk.

For now, the direction of XRP will largely be determined by the actions of long-term holders. Whether they continue to sell or decide to hold could either deepen the current correction or spark a renewed rally.