XRP News Today: XRP Drops 16% While ETFs Inject $622M—Opportunity in a Bear Market or Red Flag?

XRP vs. Solana: Analyst Insights and Institutional Trends

Veteran market analyst Peter Brandt has ignited discussion by claiming that, despite XRP trading at just $1.93 compared to Solana’s $122.94, XRP may offer stronger long-term prospects. Brandt points to XRP’s distinctive market behavior and increasing institutional involvement as key factors behind his outlook. This perspective emerges during a turbulent period for XRP, which has dropped 16% over the past week. Nevertheless, spot ETFs for XRP have accumulated more than $622 million in total inflows, indicating rising confidence among institutional investors.

In contrast, Solana has experienced a steeper decline of 32.5% within the same timeframe. This divergence highlights a shift in capital allocation, with investors favoring XRP despite its bearish technical signals.

Market Patterns and On-Chain Signals

XRP’s recent price movements have been influenced by both broader economic conditions and blockchain data. The weekly chart reveals a broadening wedge pattern—characterized by expanding highs and lows—which could signal a potential drop toward $0.88, representing a 54% decrease from current prices. Additionally, the Net Unrealized Profit/Loss (NUPL) metric for XRP has worsened, with over 41.5% of holders currently at a loss, intensifying selling pressure.

Despite these challenges, the introduction of several XRP ETFs, such as Bitwise’s $XRP and 21Shares’ TOXR, has brought in more than $622 million in investments since November. This surge reflects a strong appetite among institutions for regulated crypto exposure. Notably, these XRP ETFs have outperformed similar products for Solana and Dogecoin, with Dogecoin’s ETF attracting just $1.41 million on its first day—underscoring XRP’s greater appeal to large investors.

Technical Risks and Whale Activity

On-chain data further supports a bearish outlook for XRP. Realized losses have climbed to their highest level in seven months, with daily losses averaging $75 million as investors exit losing positions. Should the crucial support at $1.80 fail, prices could cascade down to $1.05. However, significant whale transactions—such as a recent transfer of 30 million XRP from Upbit to an unknown wallet—have sparked speculation about a potential price rebound, with some traders watching for a move toward the $2.5 resistance mark.

Meanwhile, Solana’s ETF inflows, totaling $621 million, have not been enough to counteract a 52.3% yearly decline, raising doubts about its ability to maintain institutional interest.

ETF Flows and Market Polarization

The contrasting performance of XRP and Solana ETFs highlights a broader divide in the crypto market. While Bitcoin and Ether ETFs have seen outflows, XRP and Solana products stand out as rare bright spots. XRP has attracted nearly $500 million in net inflows, while Solana has drawn $410 million. This momentum is expected to build as CME Group prepares to introduce spot-quoted XRP and Solana futures on December 15, further legitimizing these altcoins for institutional traders.

Still, XRP’s recovery faces significant hurdles. A drop below $1.80 could lead to a test of the 100-week simple moving average at $1.60. Conversely, Solana’s ability to rebound from a long-term upward trendline suggests it could outperform XRP in the short term.

Looking Ahead: Growth Potential and Challenges

Brandt’s optimistic view on XRP is rooted in its potential to benefit from ETF-driven liquidity and its strategic position in the cross-border payments industry—a sector expected to reach $250 trillion by 2027. On the other hand, Solana’s recent struggles highlight the difficulties of expanding its ecosystem during a bearish market phase. As the digital asset landscape continues to shift, the interplay between technical indicators, ETF adoption, and macroeconomic forces will determine whether XRP’s current valuation represents an opportunity or a warning.