Week of Heavy ETF Inflows Pushes XRP Into Compression Zone, Is a Major Move Coming?

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XRP has spent the past week trapped in a perpetual tug-of-war, caught somewhere between a swelling institutional demand and the price just sitting there, doing absolutely nothing. Traders are starting to notice this “compression zone” that’s becoming about as hard to ignore as the neighbor’s barking dog at 3 a.m. 🐕

Despite U.S. spot XRP ETFs creeping ever closer to a $1 billion AUM milestone (wow, that sounds impressive, doesn’t it?), the asset continues to trade in the same narrow range. This leaves everyone wondering-can this prolonged snooze-fest of consolidation possibly be building up to something more? A larger move, perhaps? Or are we just stuck in the crypto equivalent of Groundhog Day? ⏳

Now, here’s the real drama: Inflows are soaring, yet the price is barely budging. Analysts are scratching their heads, noting that even though institutional capital is flowing in, XRP’s chart looks like it’s been on a long vacation. The price action is basically saying “thanks but no thanks” to any upward movement, and profit-taking from last November’s rally and ongoing sell-side pressure are still hanging around like a bad smell. 😷

XRP Chart

ETF Momentum Builds as XRP Price Stalls

Here’s the kicker-XRP’s price is lounging around $2.06, slipping ever so slightly, even though ETF inflows have been on a consecutive hot streak. Big holders seem to be playing the “sell into strength” game, offsetting the new demand that’s trickling in through these regulated investment products. Talk about making it harder to make a move. 😅

However, XRP ETFs have been outshining Bitcoin ETFs in terms of inflow strength. Institutional investors seem to be getting in on the action early, as if they know something the rest of us don’t. They must have gotten the memo that XRP is the crypto asset to bet on in 2025.📈

Ripple CEO Brad Garlinghouse, always ready for a good soundbite, pointed out that XRP has become one of the fastest-growing U.S. crypto ETFs of the year. According to him, this wider access through traditional investment accounts is expanding XRP’s investor base. But, the market? Oh, it’s still undecided-some think ETFs are a safety net, while others think they’re like putting a lid on a pressure cooker-just waiting to blow. 💥

Regulatory and Structural Developments Add New Variables

As if the market drama wasn’t enough, there’s also the regulatory circus. Former SEC Chair Paul Atkins, in a move that no one saw coming, highlighted tokenization as the “practical path forward.” He touted benefits like increased transparency and faster settlements. It sounds good, but this sparked yet another round of debates within the XRP community. Because, of course, it did. There’s always someone with a strong opinion. 🙄

Ripple recently wrapped up a $500 million equity round, which was, as one might expect, loaded with protections for Wall Street investors. This just shows how deeply Ripple’s valuation is tied to its XRP holdings-around 90% of Ripple’s net worth apparently comes from its XRP stash. That’s a lot of pressure on one token to deliver, don’t you think? 😬

Technical Picture Shows Compression, Not Capitulation

So, let’s take a quick look at the charts. XRP is wedged between the $2.07 support level and resistance levels at $2.18 and $2.30. Analysts are pointing out weakening momentum indicators, but demand is still holding steady. If XRP manages to break above these levels, we might just see a move towards Wave 3 targets, possibly reaching $2.73. But, if not, well, brace yourself for another round of lower support retesting. 🧐

In short, XRP continues to compress like an accordion at a family gathering. It’s got some of the strongest ETF inflows of the year but is still constrained by consistent selling pressure and a broader market hesitation. The question remains-will this pressure eventually pop the price upwards or send it plummeting down? Well, that’s the million-dollar question traders will be pondering into next week. 🤔

Cover image from ChatGPT, XRPUSD chart from Tradingview

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2025-12-10 03:44