XRP’s price dropped to the psychological $2 level on Wednesday, declining by 4.3%, as traders exercised caution following Bitcoin profit-taking. Despite this technical weakness, institutional investment in XRP ETFs showed a significant increase, reflecting the cryptocurrency’s fundamental strength. Institutional activity was 40% above the weekly average, indicating that large investors are strategically selling at resistance levels rather than reacting to panic among buyers. XRP underperformed compared to other cryptocurrencies and lagged in the CD5 index, suggesting the weakness is specific to this token.
Trading volume for XRP surged, with 172.8 million tokens sold—a 205% increase—as attempts to push the price above $2 failed, bringing the price back to this support level. Meanwhile, the number of XRP tokens held on exchanges declined from approximately 3.95 billion to 2.6 billion over two months, signaling a long-term supply reduction that could favor price stability. In the U.S. market, XRP ETF investments continued steadily this week with an additional $170 million inflow, although market makers reported heavy selling pressure above $2, preventing upward movement.
Currently, XRP is stabilizing around the $2 psychological mark, facing resistance between $2.09 and $2.10 where sellers are firmly defending. A retest of the $2 level will be crucial; a breakdown could lead to a decline toward $1.95. A slowdown in ETF investment pace would also mark the loss of key support. Technically, a stable close above $2.10 is needed to establish a short-term positive trend. The market remains caught between a long-term buying trend and short-term technical pressure, with reduced supply increasing the potential for sudden price volatility.
Source: binance
