XRP is experiencing notable market activity as it tightens into its most significant technical squeeze in months, coinciding with the debut of Grayscale’s Grayscale XRP Trust ETF on NYSE Arca under the ticker GXRP. This ETF marks a transformation from its previous status as a private placement initiated in September 2024. Grayscale aims to provide “straightforward exposure” to XRP, the fourth-largest cryptocurrency by market capitalization. Krista Lynch, Grayscale’s senior vice president of ETF Capital Markets, emphasizes that this launch broadens access to the expanding XRP ecosystem.
The introduction of Grayscale’s ETF follows the emergence of XRP ETFs from other firms, such as Canary Capital and REX Shares, contributing to a surge of new offerings linked to digital assets. The context of this launch is further enhanced by the recent positive shift in XRP’s regulatory narrative, which has evolved following the resolution of Ripple’s long-standing legal battle with the U.S. Securities and Exchange Commission (SEC). A recent court ruling found that while Ripple’s programmatic sales on exchanges did not violate securities laws, certain direct institutional sales did.
This year has seen a shift in the SEC’s stance toward cryptocurrency regulations, especially with the second Trump administration, leading to the easing of investigations and the advancement of initiatives like “Project Crypto” aimed at updating digital asset rules. This change has facilitated a series of ETF approvals and conversions across the cryptocurrency sector, including multiple Grayscale products linked to other major cryptocurrencies.
Currently, XRP is trading around $2.09, reflecting a modest increase of about 2% on a recent Monday. However, the price remains constrained within a descending triangle that has shaped its trajectory since August. While sellers consistently defend a key down-sloping trendline, buyers have been active around a rising support level near $1.9. Furthermore, resistance levels identified by the 20-, 50-, and 100-day exponential moving averages (EMAs) at $2.19, $2.38, and $2.53 pose challenges to any upward movement.
The Supertrend indicator currently remains red, indicating a persistent downside bias. Until XRP can close above this indicator, the prevailing trend is likely to continue. Recent data from Coinglass highlights a concerning trend, with $22.96 million in net outflows on November 24, indicating weakened investor confidence as negative spot flows extend over several months. A sustained pattern of outflows typically indicates hesitance among buyers to engage during market recoveries.
For investors, the critical level to monitor is the support at $1.9. A decisive break below this threshold could signal a move towards further declines, potentially reaching $1.7 or even $1.5. Conversely, for buyers to regain momentum and shift the market sentiment, XRP must first reclaim and close above $2.19 and breach the descending trendline near $2.4. Without these key developments, the current market structure appears to favor sellers, despite any short-term price bounces.
