XRP Slides to $2.05 as Institutional Selling Overwhelms ETF Demand

XRP tumbled 7% to $2.05 after a sudden surge of institutional selling shattered key support levels and dragged the token back into its earlier November correction zone. The decline came despite strong signs of long-term accumulation and continued demand from newly launched XRP exchange-traded products.

Recent data shows XRP spot ETFs saw more than $666 million in inflows this month, driven in part by 21Shares’ TOXR listing. At the same time, exchange balances fell 45% over the last 60 days, signaling continued accumulation by large holders. Whale wallets added another 150 million XRP since November 25, highlighting confidence among long-term investors. But even these supportive metrics could not offset the intense wave of selling that hit as broader risk markets weakened.

The breakdown below $2.16 represented a clear technical failure of XRP’s recent consolidation pattern. That level had been a pivotal support for weeks, and losing it gave sellers the momentum needed to push the asset back into a descending channel. Lower highs at $2.38, $2.30, and $2.22 now confirm a structure dominated by bearish pressure.

Volume spiked to 309 million—more than 4.6 times the rolling average—pointing to significant institutional exit flows instead of routine volatility. Although buyers repeatedly defended the $2.05 psychological level, each rebound lacked the strength needed to reclaim broken resistance. Frequent rejections near $2.12 underscored how persistent the sell-side remained throughout the session.

Momentum indicators show XRP in oversold territory, but no clear bullish divergence has formed yet. If the token loses the $2.05–$2.00 range, the next major support sits between $1.80 and $1.87, the heart of November’s demand zone. A strong recovery back above $2.12—and especially $2.16—would signal renewed accumulation and could begin to unwind the current bearish structure.

For traders, the key levels remain straightforward: $2.05 must hold to prevent deeper downside, while a reclaim of $2.16 is essential to shift sentiment back toward the bulls.