Diverging Paths: XRP Sees Record Institutional Inflows Amid Price Decline

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As XRP's price tests critical support levels, falling below $1.90, a stark contrast is emerging in capital flow data. Institutional investors are accumulating the asset through exchange-traded funds (ETFs) at a historic pace, creating a notable disconnect from the current weak price action. On Wednesday, December 24, 2025, XRP traded near $1.86.

Broader market conditions are applying pressure. The Crypto Fear & Greed Index sits at 24, indicating "Extreme Fear," a sentiment exacerbated by XRP's loss of the $1.90 level. Macroeconomic factors are adding to the strain. The potential for currency intervention from Japan and a diminished likelihood of a US interest rate cut in March—now priced at just 45%—are strengthening the US dollar and weighing on risk assets like cryptocurrencies.

From a technical perspective, immediate support is found at $1.85. A confirmed break below this threshold could trigger a deeper correction toward $1.77 or even $1.62. The Relative Strength Index (RSI) is oscillating between 37 and 42, a zone that typically signals bearish momentum but is also approaching oversold territory.

Unprecedented Institutional Accumulation

Despite the price weakness, institutional demand tells a different story. XRP-focused ETFs have recorded 33 consecutive days of net inflows. A net $44 million entered these products on Monday alone. Since the launch of US spot XRP ETFs in November 2025, total inflows have surpassed $1.1 billion, with assets under management now exceeding $1.25 billion.

Matt Hougan, Chief Investment Officer at Bitwise, noted on December 24 that XRP ETFs are currently experiencing stronger structural demand than their Ethereum counterparts. This suggests institutions may be viewing XRP not primarily as a speculative asset, but rather as a bridge between traditional finance and digital settlement solutions.

Regulatory Milestones and Ecosystem Development

Significant regulatory progress is providing a tailwind. A key milestone was reached on December 12 when the Office of the Comptroller of the Currency (OCC) granted Ripple a conditional National Trust Bank Charter. This license allows the company to operate with federal banking rights, a crucial step for institutional custody and settlement services.

Furthermore, the GENIUS Act, passed in July 2025, facilitates the integration of tokenized money market funds on the XRP Ledger. The Ripple-issued stablecoin, RLUSD, has grown to a volume of $1.26 billion.

The ecosystem is also preparing for a major governance vote. Scheduled for late January 2026, the decision on the XRPL Lending Protocol could enable under-collateralized lending for institutional borrowers. This upgrade has the potential to lock up additional supply, transforming XRP from a speculative holding into productive capital.

Shifting Supply Dynamics

On-chain data points toward a tightening supply landscape. Over the past 60 days, approximately 1.35 billion XRP have been withdrawn from centralized exchanges. Such movements typically signal a shift into cold storage for long-term holding.

Conversely, on December 24, Ripple transferred 65 million XRP (worth roughly $121 million) to an unknown wallet—a transaction that often precedes liquidity operations. This highlights the complex interplay between different market participants.

The fundamental question for traders is whether this aggressive institutional accumulation can absorb short-term selling pressure before the anticipated protocol upgrades take effect in early 2026. Technical indicators and market sentiment suggest that a stabilization above the $1.85 support level is needed first to restore broader confidence.