XRP Price Holds at Critical Support Ahead of ETF Decisions: Can These Catalysts Revive Momentum?

XRP Clings to Crucial Support as Market Nerves Mount

XRP has entered one of its most pivotal technical phases of the year, holding near $1.84 after weeks of sustained selling pressure. The token has fallen almost 47% from its 2025 high, pushing its market capitalization down to $115 billion from nearly $200 billion earlier this year.

The price decline comes amid a broader digital-asset correction. Over the past two weeks, the crypto market has lost more than $1.2 trillion in total value, with Bitcoin slipping to $91,000 and Ethereum falling below $3,100.

Despite the bearish backdrop, XRP continues to attract institutional interest through newly launched exchange-traded funds (ETFs), providing a potential foundation for recovery. Many traders keep track of shifts in market sentiment through crypto market prices to identify potential bottoms across the sector.

ETFs Inject Capital Despite Broader Weakness

Data from SoSoValue shows that XRP ETFs have continued to draw inflows daily since their approval. Two of the most prominent products, Canary’s XRP ETF and Bitwise’s XRP ETF, have attracted $422 million and $384 million, respectively, equivalent to roughly 0.33% of XRP’s total market capitalization.

The trend stands in stark contrast to the token’s price performance. Analysts suggest that persistent ETF inflows, even during market drawdowns, signal a growing institutional base that may not be trading short-term price cycles.

More inflows could be on the way. Upcoming fund launches from Franklin Templeton and Grayscale are expected to expand the ETF landscape for XRP. If the token’s ETFs reach parity with Bitcoin and Ethereum, where ETF assets represent 5-6.5% of market capitalization, XRP funds could hold more than $5.7 billion in assets under management.

That level of exposure would mark a new era of institutional liquidity for XRP, potentially dampening volatility and reinforcing its standing as one of the few altcoins with regulated investment products.

Ripple’s Stablecoin Adds Depth to the Ecosystem

Alongside ETF inflows, Ripple’s USD stablecoin is emerging as a key factor supporting network activity. The token, launched to provide on-chain settlement and enterprise liquidity, recently surpassed $1 billion in market capitalization, with over $300 million of that circulating directly on the XRP Ledger (XRPL).

Ripple has emphasized that its stablecoin will function as a regulated bridge asset across its global payment network. Analysts view this as a critical step toward integrating Ripple’s enterprise partners into XRPL-based settlements, deepening demand for XRP in the process.

The stablecoin’s growth reflects a broader macro trend: stablecoins are becoming core to liquidity and payments infrastructure, and Ripple’s participation strengthens its narrative as an institutional-grade network rather than a speculative altcoin. Similar use cases are growing across crypto for business, where companies now use blockchain-based rails for settlements and international transfers.

Leverage Unwinds, Setting Up for Stability

One of the more encouraging signs for XRP is the sharp decline in leverage across its derivatives markets. Total futures open interest has dropped to $3.3 billion from more than $10 billion just a few months ago.

This drawdown indicates that speculative traders have largely exited, reducing the risk of cascading liquidations. With leverage reset, XRP’s market structure is now cleaner, leaving room for genuine accumulation and longer-term capital to re-enter.

A low-leverage environment has historically preceded recovery phases in major altcoins. If ETF inflows and stablecoin demand continue to rise in tandem, XRP could begin a gradual rebound from its current floor. As noted in a report on XRPL’s role in stablecoin settlement, the infrastructure changes help support this potential.

Technical Picture: Support or Breakdown?

XRP price chart (Source: TradingView)

XRP’s three-day chart highlights the $1.84 support as a critical inflection point. The token has tested this region repeatedly since late 2024 without breaking below it—a sign of entrenched buyer interest. However, the setup remains fragile.

The token has already fallen beneath its 50% Fibonacci retracement and below both its 50-day and 100-day exponential moving averages, a pattern often associated with exhaustion in short-term rallies.

Analysts warn that a confirmed break below $1.84 would complete a double-top pattern from April’s high near $3.40, potentially opening the door to $1.50. On the upside, if XRP can hold support and reclaim $2.50, momentum could shift swiftly, targeting a retest of $3.00 and beyond.

Market technicians point out that XRP’s resilience at support during previous selloffs often preceded multi-week rebounds. “This level is the line in the sand,” one analyst wrote. “If it holds, XRP could lead a sector rotation once ETF optimism strengthens.”

ETF Momentum and Broader Sentiment

The ETFs’ steady inflows come at a critical juncture for XRP and the broader market. While Bitcoin and Ethereum ETFs remain dominant, their inflows have slowed amid macroeconomic uncertainty, allowing newer products like XRP to capture fresh investor attention.

Industry analysts expect ETF inflows to accelerate in early 2026 as major asset managers complete compliance updates required after the government shutdown earlier this year. The U.S. SEC’s more open posture toward staked and structured crypto funds may also encourage new product filings.

If these regulatory and liquidity trends continue, XRP’s ETFs could serve as a bridge for traditional investors seeking exposure to alternative blockchain assets without venturing into riskier DeFi platforms. For institutional access, compliant fiat to crypto onramp solutions are becoming essential entry points.

Broader Market Pressure and Ripple’s Outlook

The broader crypto correction continues to weigh on sentiment. Still, Ripple’s on-chain metrics remain solid. Active addresses on the XRPL are up month-over-month, and transaction volume continues to grow, driven partly by Ripple USD stablecoin settlements.

The company’s efforts to expand into regulated payment corridors in Asia and the Middle East have also helped maintain XRP’s visibility among institutional players. While short-term traders focus on price action, Ripple’s steady corporate adoption narrative remains a quiet but powerful catalyst.

Conclusion

XRP’s current phase is a tension point between short-term weakness and long-term opportunity. The token sits at a critical support level it has defended for nearly a year, just as ETF inflows, stablecoin expansion, and reduced leverage begin to create favorable conditions for recovery.

If XRP holds above $1.84 and ETF participation continues to climb, the coming weeks could mark the start of a structural rebound. A decisive break, however, would risk accelerating losses toward $1.50, turning the support zone into resistance.

For now, XRP’s resilience at this level will determine whether it remains a leading institutional altcoin or succumbs to another leg of the correction. The next move, driven by ETF approvals and on-chain momentum, may set the tone for the market’s next phase heading into 2026.