XRP Faces Critical Test as ETF Launch Approaches

The cryptocurrency XRP finds itself at a pivotal moment this weekend, with conflicting forces creating market uncertainty. While the imminent launch of major exchange-traded funds should theoretically fuel optimism, current trading patterns tell a different story. Institutional players are positioning for entry even as large-scale investors capitalize on the opportunity to exit their positions, leaving market observers questioning whether this represents a collapse or a potential entry point for courageous investors.

Institutional Validation Meets Selling Pressure

Monday, November 24, marks a significant milestone for XRP as asset managers Grayscale and Franklin Templeton prepare to launch their ETFs—a substantial endorsement of the digital asset’s legitimacy. This institutional approval, however, coincides with substantial selling activity that’s overwhelming market demand.

Blockchain analytics reveal the core issue: major holders, often called “whales,” have offloaded approximately 200 million XRP tokens within the past 48 hours. This massive supply influx has effectively neutralized the buying pressure generated by approximately $410 million in ETF-related inflows.

Technical Support Levels Under Threat

Current price action exemplifies the classic “sell the news” phenomenon. Despite NYSE Arca’s regulatory approval clearing the path for institutional capital, XRP’s value continues trending downward. The digital currency is currently trading at its 52-week low of $2.00, struggling to maintain crucial support levels.

Should investors sell immediately? Or is it worth buying XRP?

The decline from yearly highs of $3.65 has been severe. Market analysts caution that if the important technical support around $1.90 fails to hold, further correction toward $1.55 becomes likely. Conversely, establishing a solid foundation could enable a trend reversal toward $2.50, though sufficient buyer interest currently appears lacking.

Investor Sentiment Shows Signs of Capitulation

Market participants are exhibiting clear signs of stress. Network activity metrics indicate declining engagement, suggesting retail investor interest is waning while speculation dominates trading. Additionally, the percentage of XRP holdings still in profit has dropped to its lowest level since mid-2024—a pattern that historically signals short-term holder surrender and sometimes precedes market consolidation.

Monday’s ETF commencement represents a critical test for XRP. If the fresh ETF volume proves insufficient to absorb the persistent selling from major holders, the cryptocurrency could face additional downward pressure in the coming sessions.