XRP News Today: XRP ETFs Ignite Hope, Yet 42% of Tokens in Loss Point to Underlying Risks

Ripple's

token is experiencing renewed downward pressure as open interest drops to its lowest point in a year. Analysts caution that the fragile market structure could lead to further declines. Blockchain data shows that 41.5% of XRP’s total supply—about 26.5 billion coins—is currently underwater, marking the lowest profitability since November 2024, when . Although the price has quadrupled since then, the concentration of tokens among a few holders points to instability, leaving recent buyers with substantial unrealized losses .

Recent price swings have been intensified by the launch of several exchange-traded funds (ETFs) linked to XRP. Canary Capital’s XRPC ETF and Bitwise’s XRP ETF

within just a few days after launching on November 13, highlighting growing institutional interest. However, a broader market downturn—sparked by Bitcoin’s drop to $84,000 and a 9% decrease in the overall crypto market cap below $3 trillion— , causing XRP to fall below $2 on November 21 . Experts point out that while ETF investments could eventually help stabilize demand, the current market remains vulnerable, with leveraged trades and macroeconomic challenges heightening the risk of further losses .

Technical analysis indicates XRP is at a pivotal point. The token has

, with buyers consistently stepping in to defend this zone. A developing "pennant" formation—a consolidation pattern that often precedes a breakout—suggests that if bulls can keep prices above $2.16, XRP may . Still, with 42% of circulating XRP at a loss and large holders controlling more than 68% of the supply, the potential for sharp price movements remains high .

Wider market conditions add to the uncertainty. The SEC’s 2025 decision that secondary XRP sales do not constitute securities

, but XRP’s price still moves in tandem with Bitcoin. A recent flash crash on the derivatives platform Hyperliquid, where briefly plunged to $80,255, , deepening the crypto market’s decline . Analysts attribute the downturn to diminished expectations for a Fed rate cut in December, slowing ETF inflows, and a shift in risk preference toward traditional assets .

Investors are now closely monitoring key price levels to anticipate XRP’s next move. A sustained climb above $2.16 could spark renewed bullish sentiment, while a drop below $2.00 would likely accelerate selling

. Meanwhile, the ongoing influx of institutional funds through ETFs may eventually counteract bearish fundamentals, though experts warn that liquidity and broader economic trends will continue to play a crucial role .

As the XRP market stands at this crossroads, the interaction between on-chain metrics, ETF flows, and overall crypto sentiment will determine its path forward. With open interest at its lowest in a year and technical signals pointing to a major support test, the coming weeks will be critical in deciding whether XRP stabilizes or faces a deeper downturn.