Are XRP Whales Blocking a Break Above $2 as Selling Pressure Rises?

Crypto exchange-traded funds (ETFs) have extended their rally, with Bitcoin leading the charge, attracting $224 million in inflows. This surge follows a period of volatility in the cryptocurrency market, where Bitcoin and Ether faced significant outflows, contrasting with the positive performance of Solana and XRP.

The Cboe has approved the listing of the 21Shares XRP exchange-traded fund (ETF), marking a significant step towards the establishment of another U.S. spot ETF for XRP. This approval comes amid a notable inflow streak for XRP ETFs, which have recently approached the $1 billion mark over consecutive days of inflows, indicating strong institutional interest.

XRP has likely completed its accumulation phase and is entering a potential expansion phase, with indicators such as support levels, RSI, and fractals suggesting a bullish trend. Recently, XRP experienced a slight decline of approximately 3%, trading at around $2.08, but the overall market sentiment remains optimistic about its future performance.

XRP has seen a significant drop in transaction fees, plummeting by 89%, which has raised concerns about the token's price potentially falling below $1.75. This decline is attributed to a decrease in speculative interest and a weakening technical structure, suggesting a bearish outlook for the cryptocurrency.

The cryptocurrency market experienced a significant downturn following the Federal Reserve's third consecutive 25 basis point interest rate cut, which was anticipated by many. Despite initial price surges for Bitcoin, Ether, XRP, and Solana, the momentum quickly reversed, leading to notable declines in their values. Bitcoin fell over 5%, while Ether dropped more than 8.5% at one point.

Crypto prices experienced a pullback on December 11, following a brief bounce after the Federal Reserve's recent rate cut. The total cryptocurrency market capitalization decreased by 3% to $3.1 trillion, with Bitcoin trading at $89,975, down 2.7% from previous levels. Other major cryptocurrencies like XRP, UNI, and DOT also retraced after the initial surge.

XRP price has recently declined below $2.10, struggling to maintain support around the $2.050 pivot level. The price has dropped to $1.993, indicating a bearish trend as it trades below key moving averages. A failure to recover above $2.00 could lead to further declines for the cryptocurrency.

Cboe BZX Exchange has approved the listing of the 21Shares spot XRP exchange-traded fund (ETF), a significant milestone that paves the way for trading to commence. This approval is part of a broader trend as multiple XRP ETFs are gaining traction in the market.