"XRP ( ) has spent weeks hovering around the $2 mark, and investors are paying close attention. The XRP $2 floor has become more than a psychological level-it now represents a key test of confidence, liquidity, and long-term positioning. Buyers continue defending the XRP $2 support, even as volatility shakes the wider crypto market. However, risks remain beneath the surface. Three scenarios could break the XRP $2 support: regulatory shocks reversing institutional demand, macro recession forcing ETF redemptions, or whale distribution overwhelming bid support."
"After aggressive selling earlier in 2025, XRP's exchange balances fell by roughly 45% as more than 1.35 billion tokens moved into custody. These outflows came as new U.S. spot ETFs absorbed supply and long-term holders moved their coins off exchanges. Within five weeks of the ETF launch, net XRP ETF inflows reached over $1 billion -the fastest milestone for any crypto fund since Ethereum ETFs launched."
XRP has consolidated around the $2 level, which now functions as a key test of market confidence, liquidity, and long-term positioning. Heavy outflows from exchanges—about a 45% decline equating to over 1.35 billion tokens—coincided with rapid U.S. spot ETF absorption and long-term holders moving coins off exchanges. Net ETF inflows topped $1 billion within five weeks of launch, signaling strong institutional demand. Trading shifted toward regulated platforms and OTC desks, reducing retail-driven panic selling. Repeated tests of $1.85–$2.05 have elicited immediate buying and long weekly lower wicks, indicating supply absorption. Key risks remain: regulatory shocks, macro-driven ETF redemptions, or concentrated whale distribution could overwhelm support.
Read at 24/7 Wall St.
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