XRP News Today: Surging XRP ETF Inflows Contradict Token’s Ongoing Downtrend

XRP, the cryptocurrency powering the Ripple network, has caught the attention of investors once again despite a downturn across the crypto sector. Analysts are pointing to a possible bullish divergence as the first U.S. spot

exchange-traded fund (ETF) made a record-setting debut. Although within the first day after the ETF launch, on-chain data and institutional investments indicate that XRP may be nearing a short-term bottom, according to market experts.

The

(XRPC) , attracting $245 million in net inflows and $59 million in trading volume on its opening day. This , highlighting robust institutional interest in regulated altcoin products. Nevertheless, XRP's price trend stayed negative, with the token above $2.24. The has led to what Coindesk describes as a "classic V-shaped reversal" in short-term trading patterns.

Recent market data shows increasing vulnerability in XRP's supply structure.

of XRP in circulation is currently profitable, marking the lowest point since November 2024. This comes after a widespread crypto selloff, with and pulling altcoins down as well. Meanwhile, over a 24-hour period, according to Nansen, reflecting a battle between panic selling and calculated accumulation.

The

, which lets ETF shares be swapped directly for XRP tokens, boosted institutional involvement without immediately impacting trading volume. , which helps explain the difference between XRPC's $250 million in inflows and its $58 million in trading activity. Still, : ETFs experienced $866 million in outflows that same day, the second-largest outflow on record.

Technical analysis offers mixed signals.

are all trending downward, and the price was unable to move above the 50-day MA in early November. Key support is found near $2.16 (the 0.382 Fibonacci retracement), and a drop below this could trigger a fall to $1.88. might restore bullish sentiment, though analysts warn that the overall market is still "locked in a medium-term downtrend."

Opinions among traders are split. Some see the ETF's strong start as a sign of long-term growth potential, while

are fueling short-term price swings. exited XRP holdings before the ETF went live, selling off about $28 million in derivatives within a day. This who are "bottom fishing" near $2.22, based on Coindesk's blockchain analysis.

As XRP faces this pivotal moment, attention is focused on how the SEC will regulate crypto ETFs and on the broader risk appetite in markets. Whether the token can maintain support above its recent low of $2.22 will be key; failure to do so could open the door to further declines toward $2.02. For now, the

ETF's landmark launch highlights both the asset's appeal to institutions and the unpredictable nature of a market still dealing with macroeconomic uncertainty.