XRP Price Movement and ETF Impact
Even with ongoing interest surrounding XRP exchange-traded funds (ETFs), the price of XRP has been sluggish in its rise. This situation has left many investors scratching their heads, especially given the buzz about institutional demand and the influx of ETF investments.
Analyst Zack Rector discussed this phenomenon on the Paul Barron Podcast. He mentioned that while the lack of price movement is indeed frustrating, it’s not entirely unexpected. Rector explained that the market seems to be experiencing a “news-selling” phase, a pattern that often follows the launching of a significant ETF.
Why ETF Inflows Haven’t Boosted XRP Prices Yet
Rector clarified that the burgeoning demand for ETFs is not translating into an increase in XRP’s open market price since a bulk of ETF purchases happen over the counter, not through public exchanges.
“In November, around $803 million flowed into the XRP ETF,” Rector pointed out. “Conversely, about $808 million worth of XRP was transacted on centralized exchanges.”
Since the market price of XRP is determined on public exchanges, the selling pressure there counteracted the private demand seen with the ETF.
Currency Outflows Offset ETF Buying
According to Rector, nearly $808 million exited centralized exchanges in November, as investors sold their XRP for cash and stablecoins. This selling intensified price declines, despite rising interest rates for the ETFs.
“When ETF inflows start to hit the exchanges, the dynamics shift,” he explained. “That’s when you see aggressive buying.”
Market Cap Data Indicates Strong Upside Potential
Rector referred to historical market data to illustrate XRP’s volatility when sentiment turns favorable. For instance, in November 2024, XRP’s market cap grew by nearly $100 billion in just one month, driven by significant capital inflows. However, in November 2025, substantial currency outflows led to a $41 billion decrease in market capitalization.
“This demonstrates how swiftly XRP can react when buyers enter the market,” Rector noted.
Analysts Say $1 XRP Chance Is Very Low
When directly asked if XRP could bounce back to $1, Rector was quite straightforward.
“No chance,” he asserted. “That would necessitate a massive black swan event.”
He added that the market currently has sufficient liquidity, with passive buying underway and numerous long-term holders ready to make impulsive purchases.
Strong Buying Interest Below $2
Rector mentioned that sizable buy orders have already clustered around the existing support level.
“I have a buy order at $1.91,” he shared. “If we can break out of $1.90, we might retest $1.80, but breaking below that will be quite a challenge.”
He highlighted that XRP has been setting new lows throughout the year, with significant levels around $1.60 in April, $1.77 in October, and $1.81 in November.
