XRP Approaches Critical $2 Threshold Amid Institutional Accumulation

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Trading at $1.94 on Sunday, the cryptocurrency XRP finds itself at a pivotal juncture. The psychologically significant $2.00 level is within reach, setting the stage for potential volatility in the coming days. This movement unfolds against a backdrop of substantial buying from major investors and a persistently volatile macroeconomic environment.

A consistent driver of support for XRP has been the sustained inflows into US spot XRP ETFs. These financial vehicles recorded their 24th consecutive day of net inflows this past Friday, attracting $13.21 million. Since their launch, these ETFs have collectively gathered over $1.07 billion. This unbroken stream of institutional capital provides structural support for the asset's price.

On-chain metrics reveal a complementary trend of accumulation. Over the weekend, wallets holding between 100 million and 1 billion XRP added approximately 330 million tokens to their balances. This acquisition, valued at roughly $642 million, signals that large-scale investors view prices below $2.00 as an attractive entry point. Concurrently, a decline in network "liveliness" indicates that long-term holders are not selling, instead moving coins to cold storage—behavior historically associated with a pending supply squeeze.

Recovery from Central Bank Volatility

XRP's path to its current position involved navigating recent central bank policy shifts. Last week, the asset retreated to $1.77 following the Bank of Japan's decision to raise interest rates by 25 basis points to 0.75%. The move initially sparked concerns over a potential unwinding of Yen carry trades, which could pressure risk assets. However, the central bank's dovish forward guidance quickly calmed market nerves. XRP rebounded, posting gains of about 1.6% and stabilizing above the crucial $1.90 support level.

The asset's market capitalization currently stands near $117 billion, accompanied by robust trading volume.

Ecosystem Growth and Technical Outlook

Beyond market dynamics, the XRP ecosystem continues to evolve. The recent introduction of a lending protocol on the XRP Ledger adds a decentralized finance (DeFi) component. This development not only offers yield opportunities for institutional players but also has the potential to lock up additional supply, removing it from the active market.

From a technical perspective, $2.02 represents the immediate and decisive resistance barrier. A sustained breakout above this level could pave the way for a move toward $2.20, with a medium-term target of $2.50. On the downside, the support zone between $1.85 and $1.90 has been reinforced by recent purchasing activity.

While some analysts, including those at Standard Chartered, posit a long-term price target as high as $8.00, the immediate focus for traders remains squarely on the $2.00 benchmark. The interaction between persistent institutional accumulation and this key technical level will likely determine XRP's trajectory in the near term.