Summary
- XRP (XRP) fell more than 7% over the past week, slipping below $2, signaling a possible shift to a bearish trend.
- Despite positive catalysts such as an EU MiCA license and RippleUSD (RLUSD) being listed on Binance, the market is interpreting the situation as entering a “catalyst exhaustion” phase.
- Glassnode warned of the possibility of further corrections, citing a structure similar to the early stages of the 2022 bear market along with a $53 million net outflow from ETFs.
CryptoNow
$2 level breaks after just one week
Despite positive catalysts such as securing a European license
Heavy selling from institutions and retail investors
XRP, which had shown a strong uptrend earlier this year, is showing signs of turning bearish after losing the $2 level. Despite a string of positive developments such as obtaining a license in Europe, both price action and supply-demand dynamics have been shaken, heightening market caution.
According to CoinMarketCap on the 25th, XRP plunged more than 7% over the past week, slipping below $2. The rally that had continued after breaking above $2.3 at the start of the year has rapidly lost steam this month. In Korea, it briefly surged to the 3,400 won range but is now below 3,000 won.
Analysts say selling pressure intensified after a short-term peak formed, causing upward momentum to fade. Volatility indicators have also spiked in a short period, increasing price instability.
On the fundamentals side, a series of positive headlines followed. Ripple, the issuer of XRP, recently secured a license under the European Union’s (EU) Markets in Crypto-Assets Regulation (MiCA). It also listed its proprietary stablecoin, RippleUSD (RLUSD), on the global exchange Binance. However, as these major catalysts have failed to drive a rebound, the market is interpreting the move as effectively entering a “catalyst exhaustion” phase.
Data analytics firm Glassnode assessed that XRP’s price structure and investor behavior resemble the early stages of the 2022 bear market. It said selling driven by short-term holders is expanding, while on-chain activity is also slowing noticeably. Glassnode warned, “If the current trend continues, it is difficult to rule out the possibility of further corrections.”
Institutional outflows are also a headwind. On the 20th, XRP spot exchange-traded funds (ETFs) recorded a one-day net outflow of $53 million (about 7 billion won), the largest since launch. This suggests institutions are reducing positions for risk management amid rising volatility. ETF outflows can translate into direct selling pressure in the spot market, further undermining investor sentiment.
Reporter Lee Young-min, Bloomingbit 20min@bloomingbit.io
Bloomingbit Newsroom
news@bloomingbit.ioFor news reports, news@bloomingbit.io
