XRP Price Prediction: Trading volume soars while strong ETF inflows create a divergence, with $2 becoming a key support level

XRP fails again to break through the $2.09-$2.10 resistance level on Wednesday, and after reaching a high point, it encounters rapid institutional selling, causing the price to fall back to the critical $2.00 mark. The daily decline for XRP is 4.3%, performing weaker than the overall cryptocurrency market. Nonetheless, spot ETF fund inflows have continued to net over $170 million this week, presenting a peculiar divergence of “weakening prices and tightening supply.”

From the data, XRP faces strong selling pressure around $2.08, with hourly trading volume soaring to 172.8 million, up 205% compared to the daily average. Such volume expansion typically indicates institutions distributing at resistance levels rather than retail panic selling. The overall trading volume for the day increased by 54% compared to the 7-day average, further reinforcing the view that institutional funds dominate this correction.

On-chain supply shows that holdings on exchanges have decreased from 3.95 billion to 2.6 billion XRP over the past 60 days, indicating a continuous tightening of supply. This reduction in supply alongside declining prices has led XRP to form a months-long triangular compression pattern, with short-term volatility increasingly limited, accumulating energy for the next major move.

The market context is also noteworthy. The US spot XRP ETF has had zero outflows for two consecutive weeks, with net inflows exceeding $170 million just this week, standing out amid the current weak market sentiment. However, market makers previously warned of concentrated sell orders above $2.10, which further confirms the resistance strength.

Price-wise, $2.00 remains a key support level, with a secondary support at $1.95 overlapping with previous demand zones. A valid breakdown below $2.00 could trigger further decline; conversely, if XRP can hold above $2.10 on high volume, the short-term structure may turn bullish quickly. The current rebound is encountering resistance below $2.08, with weak momentum.

For traders, key points to watch include: whether $2.00 can hold, if ETF inflows can continue, and whether volume can stay above $1 billion upon breakout. Additionally, as exchange-held supply decreases, the next wave of XRP’s volatility is expected to be larger than previous phases. Despite short-term weakness, structural compression suggests that the crypto market may soon witness a critical directional breakout for XRP. (CoinDesk)