Despite a strong first-day inflow of $164 million into the new XRP ETF, selling pressure and whale-led moves have pushed the asset back toward a key demand zone.
XRP is trading just above the $2.20 pivot, a level traders say could determine the asset’s short-term trend after a volatile week marked by heavy liquidations and limited ETF-driven momentum. Despite a solid ETF launch, XRP has struggled to hold higher levels, returning to a key structure zone that has repeatedly served as a battleground for buyers and sellers.
XRP Pulls Back Toward Key Technical Support
XRP’s price action has slipped back into a crucial demand area between $2.10 and $2.20, as shown in recent market structure charts. The ETF’s debut on major U.S. platforms generated roughly $164 million in first-day inflows, but those gains were overshadowed by a wave of futures liquidations that triggered a sharp pullback.
BitXJournal market analyst noted that “ETF inflows were strong but not strong enough to offset the aggressive unwind across leveraged long positions.” The correction adds to a broader trend of lower highs forming on the daily chart, emphasizing continued selling pressure from large holders.
Market indicates several breaks of structure (BOS) and change-of-character (CHOCH) points showing the current bearish bias. The market has been consistently rejecting mid-range supply at $2.60–$3.00, which has now formed a reinforced resistance block.
Why the $2.20 Level Matters
The green demand zone around $2.20 has held firm multiple times since summer, acting as a structural support tied to whale accumulation. Analysts say this level must remain intact to avoid extended downside.
BitXJournal technical strategist explained that “a clean breakdown below $2.20 would expose XRP to the next liquidity pocket near $1.85, where prior accumulation occurred.”
Market also shows a “strong low” marked below the $1.60 level — the final defense area for long-term bullish structure.
Whale Activity and ETF Data Will Shape Direction
On-chain activity suggests mixed behavior among large holders. Some wallets have been distributing into the recent rally, while ETF inflows hint at renewed institutional interest. Traders say the balance between these two forces will determine whether XRP rebounds or slides further.
If ETF inflows accelerate this week, XRP could reclaim $2.40, shifting momentum back in favor of buyers. But if whale distribution continues, the asset may revisit deeper demand zones.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.