XRP at Critical Juncture: ETF Launch Meets Price Plunge

The cryptocurrency landscape witnessed a pivotal moment for institutional adoption this week, yet XRP's market performance tells a contrasting story. As the United States welcomes its first official spot ETFs for the digital asset, XRP's value has deteriorated significantly, testing crucial support levels that could determine its near-term trajectory. This divergence presents market participants with a fundamental question: are we witnessing classic profit-taking following anticipated news or the final selloff before a substantial upward move? The price action on Friday, November 21, 2025, may provide clearer direction.

Trading commenced for the Bitwise XRP ETF (Ticker: XRP) on the NYSE this Thursday, marking a watershed moment for regulatory acceptance. Simultaneously, Grayscale is converting its existing trust into the Grayscale XRP Trust ETF (Ticker: GXRP), with this rebranding expected to finalize imminently. These developments officially grant XRP access to the regulated US securities marketplace—a gateway previously largely inaccessible to institutional capital.

Contrary to expectations, these landmark events were accompanied by a severe price correction. XRP is currently fluctuating within a narrow band between $2.10 and $2.15, reflecting a weekly decline of approximately 16 percent. The $2.00 threshold now represents both a psychological and technical linchpin; a breach of this support level could trigger further declines toward the $1.75 region. Overhead resistance remains formidable at the $2.20 zone, with more substantial selling pressure anticipated between $2.60 and $2.65.

Market Sentiment and Whale Activity Paint Complex Picture

On-chain metrics reveal a market characterized by conflicting signals. A 27 percent surge in 24-hour trading volume typically indicates either panic selling or asset redistribution from retail holders to institutional players. Concurrently, open interest across derivatives markets has collapsed to its lowest point since November 2024, suggesting excessive leverage is being systematically removed from the system through position liquidations.

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

Notably, while smaller investors retreat, wallets containing over 100 million XRP have demonstrated net accumulation throughout the past 30 days. These "mega-whales" appear to be buying the downturn—behavior that potentially signals long-term confidence in XRP's underlying infrastructure.

The Fear & Greed Index has plummeted to 15 points, registering "Extreme Fear" levels not seen since the second quarter of 2025. Historically, such extreme readings often coincide with local market bottoms, though confirmed reversal signals remain absent, warranting continued caution.

Ecosystem Development Amid Price Volatility

Beyond immediate price action, the Ripple ecosystem continues evolving. The RLUSD (Ripple USD) stablecoin is emerging as a significant growth component—not as direct competition to XRP, but rather as a complementary bridging asset. Phil Kwok, co-founder of EasyA, emphasized today that RLUSD's purpose is to "bring the world onto XRP rails." By functioning as stable collateral, RLUSD aims to boost the Total Value Locked (TVL) within the XRP Ledger ecosystem, thereby indirectly stimulating demand for XRP as the primary settlement token.

The $2.00 Line: Battlefield for Bull and Bear

All attention now focuses on whether the $2.00 support will hold through Friday's trading session. A daily close beneath this critical level could unleash another wave of selling pressure. Conversely, settlement above $2.20 would constitute the first bullish technical signal—suggesting that institutional inflows through the new ETF vehicles are ultimately overcoming short-term distribution pressure.