Why did the price of XRP fall?

XRP dropped 3.29% to $2.14 in the last 24 hours, underperforming the overall crypto market, which fell 2.12%. The main reasons for this decline are:

1. Technical Resistance – XRP couldn’t break above the $2.30 level, leading traders to take profits.
2. Bitcoin’s “Death Cross” – A bearish signal in Bitcoin caused fear in the market, pulling down altcoins like XRP.
3. ETF Disappointment – The new XRP ETF by Canary Capital started strong with $58.6 million in volume but lost momentum quickly.

Detailed Analysis

1. Technical Factors (Negative Impact)

Summary:
XRP hit a strong resistance point at $2.30, which it has tested multiple times since mid-November. On November 17, trading volume surged by 342% to 237 million XRP, indicating that big investors were selling.

What this means:

• XRP’s price fell below important technical levels, including the 200-day moving average ($2.57) and a key Fibonacci retracement level ($2.46).
• Indicators like RSI (40.24) and MACD (-0.0057) suggest bearish momentum, with the next support level around $2.21.

What to watch:
If XRP closes below $2.21, it could quickly drop further to between $2.02 and $1.98, according to CoinDesk.

2. Market Sentiment and Bitcoin’s Influence (Negative Impact)

Summary:
On November 16, Bitcoin experienced a “Death Cross,” where its short-term 50-day moving average fell below the long-term 200-day moving average. This is often seen as a bearish signal and increased fear across the crypto market, with the Fear & Greed Index dropping to “Extreme Fear” (17 out of 100).

What this means:

• Investors moved money into cash or Bitcoin, putting pressure on riskier altcoins like XRP.
• XRP’s price has become closely linked to Bitcoin’s, with a 60-day correlation of 0.84, meaning XRP tends to follow Bitcoin’s price movements closely.

3. XRP ETF Launch and Its Impact (Mixed)

Summary:
The first U.S. spot XRP ETF, launched by Canary Capital on November 13, had an initial trading volume of $58.6 million but didn’t maintain strong interest afterward.

What this means:

• The weak follow-up suggests that institutional investors remain cautious, partly because Ripple is still involved in a legal case with the SEC.
• Data from derivatives markets shows $25 million in long position liquidations over 24 hours, indicating that traders betting on XRP’s rise are closing their positions.

Conclusion

XRP’s recent price drop is due to a combination of technical selling pressure, increased market fear driven by Bitcoin’s bearish signals, and less enthusiasm following the XRP ETF launch. While large investors buying around $2.20 might help stabilize the price in the short term, ongoing market uncertainty and regulatory challenges limit the potential for a strong rebound.

Key point to watch: Can XRP maintain support at $2.21 as Bitcoin tries to climb back above $93,000?

What could affect the price of XRP?

XRP’s price outlook depends on clear regulations, growing use by big financial players, and current market trends.

1. Regulatory Resolution – The outcome of the SEC lawsuit could open the door for more institutional interest.
2. Institutional Integration – Partnerships and potential ETFs may increase demand based on XRP’s real-world use.
3. Market Sentiment – Fear in the market and Bitcoin’s dominance are putting pressure on alternative cryptocurrencies like XRP.

In-Depth Look

1. Regulatory Clarity & SEC Lawsuit (Mixed Impact)

Overview: The lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against Ripple has been ongoing since 2020 and is close to being resolved. Recent updates suggest both sides are working toward a settlement, which could end the uncertainty around XRP. A positive result might encourage large investors to enter, while delays could keep the market cautious.
What this means: If the lawsuit ends favorably, XRP could be listed on more exchanges and approved for ETFs (exchange-traded funds), making it easier for investors to buy and sell (U.Today). However, if Ripple faces penalties or restrictions, it could limit XRP’s growth potential.

2. Institutional Partnerships & ETFs (Bullish Impact)

Overview: Ripple has formed partnerships with major players like banks in the UAE, Mastercard (for RLUSD settlements), and BNY Mellon (for custody services). These moves aim to make XRP a “bridge currency” for faster and cheaper cross-border payments. Over 300 financial institutions currently use RippleNet, and XRP-based ETFs are awaiting SEC approval.
What this means: If ETFs from companies like Franklin Templeton and 21Shares launch successfully, XRP could see a surge similar to Bitcoin’s ETF-driven rally in 2021, potentially attracting over $10 billion in new investments (CoinMarketCap). Additionally, RLUSD’s adoption of over $1 billion on the XRP Ledger increases real transaction demand.

3. Technical Momentum & Market Sentiment (Bearish Near-Term)

Overview: Currently, XRP is trading around $2.16, down about 15% over the past week. Technical indicators like RSI (Relative Strength Index) at 40.24 and MACD (Moving Average Convergence Divergence) at -0.0057 suggest downward momentum. Support levels around $2.08 are critical. Meanwhile, the overall crypto market shows high fear (fear index at 17/100) and Bitcoin’s dominance at 58.8% is limiting gains for altcoins like XRP.
What this means: If XRP falls below $2.08, it could trigger panic selling. However, the XRP Ledger’s strong network activity—over 100 million validated transactions—indicates long-term strength and resilience (XRPScan).

Conclusion

XRP’s price outlook is a balance between positive regulatory developments and short-term technical challenges. A resolution to the SEC lawsuit and approval of ETFs could spark a strong price rally. On the other hand, failing to hold support near $2 could lead to a drop toward $1.88. Keep an eye on the August 15, 2025 SEC deadline—this could be a key moment when legal clarity and institutional adoption come together to shape XRP’s future.

What are people saying about XRP?

XRP’s price outlook is swinging between optimism and caution. Here’s the latest:

1. Bullish signals suggest XRP could rise above $3.20 if it breaks key resistance
2. Bearish warnings point to a possible 45% drop down to $1.20
3. ETF news heats up as Franklin Templeton updates its filing

Deep Dive

1. @cryptoWZRD_: Inverse Head & Shoulders Pattern – Bullish Signal

"XRP is forming an inverse head and shoulders pattern – breakout is near."
– @cryptoWZRD (105K followers · Oct 27, 2025, 03:37 UTC)
[View original post](https://x.com/cryptoWZRD/status/1982652962381209774)
What this means: The inverse head and shoulders is a well-known chart pattern that often signals a strong upward move. If XRP breaks above $2.55, which has acted as both support and resistance, it could rally 30-50%.

2. @ZachRector7: Descending Triangle Pattern – Bearish Warning

"XRP is forming a bearish descending triangle, risking a 45% drop to $1.20."
– @ZachRector7 (90K followers · May 5, 2025, 12:11 UTC)
View original post
What this means: A descending triangle often indicates weakening buying interest. If XRP closes below $2.07 on a daily basis, it could trigger a sharp sell-off, potentially dropping to $1.20.

3. @johnmorganFL: ETF Update – Mixed Impact

"Franklin Templeton’s XRP ETF filing removes SEC delay clause."
– @johnmorganFL (35K followers · Nov 7, 2025, 08:00 UTC)
View original post
What this means: Franklin Templeton’s updated filing speeds up the SEC’s review process but doesn’t guarantee approval. Following the news, XRP’s price volatility jumped nearly 50%, reflecting market uncertainty and excitement.

Conclusion

The outlook for XRP is mixed right now. Technical charts show both bullish and bearish signs, while regulatory progress on ETFs remains uncertain. Watch the $2.07 to $2.55 price range closely this week—breaking above or below could set the tone for XRP’s movement through December. Also, keep an eye on the SEC’s ETF decision timeline and Ripple’s progress with its RLUSD stablecoin.

What is the latest news about XRP?

XRP is making progress with regulatory approvals and technical developments as more people and institutions start using it. Here are the key updates:

1. XRP ETFs Launch (November 17, 2025) – Big investment firms introduced XRP exchange-traded funds (ETFs), making it easier for large investors to buy XRP.
2. UAE Banking Partnerships (November 17, 2025) – Ripple teamed up with banks in the United Arab Emirates to use XRP for faster international payments.
3. $20 Price Target Speculation (November 17, 2025) – Some experts see patterns suggesting XRP’s price could rise significantly.

Deep Dive

1. XRP ETFs Launch (November 17, 2025)

Overview: Investment companies like Canary Capital and Franklin Templeton launched ETFs focused on XRP. These funds attracted $1.2 billion from investors within just one day. This shows growing interest from big financial players, similar to what happened with Bitcoin and Ethereum ETFs.
What this means: ETFs can help make XRP easier to buy and sell, potentially increasing its stability and attracting more investors. However, XRP’s price dropped by 2.3% right after the launch, reflecting mixed feelings in the market amid broader sell-offs (CoinMarketCap).

2. UAE Banking Partnerships (November 17, 2025)

Overview: Ripple partnered with the Commercial Bank of Dubai and the National Bank of Fujairah to integrate XRP into their systems for cross-border payments. This builds on Ripple’s regulatory approval in Dubai from March 2025.
What this means: The UAE handles over $100 billion in remittances each year, making it a key market for XRP’s use in real-world money transfers. Despite this, XRP’s price stayed steady around $2.16, showing little immediate market reaction (CoinMarketCap).

3. $20 Price Target Speculation (November 17, 2025)

Overview: Analysts spotted a bullish “flag” pattern on XRP’s price chart, which in the past has led to price increases of 8 to 13 times. For this to happen, XRP needs to stay above $2 and break through resistance at $2.60.
What this means: While the technical setup is promising, reaching $20 depends on Bitcoin’s price staying stable and no new regulatory problems. XRP’s recent volatility (5.13% over 30 days) and a market sentiment index showing “Extreme Fear” (score of 17) suggest caution (Cryptonewsland).

Conclusion

XRP is at an important crossroads, balancing growing institutional interest with uncertain price movements. The big question is whether new investments from ETFs will overcome current market fears and volatility. Keep an eye on XRP’s $2 support level and ETF-related trading activity for signs of what’s next.

What is expected in the development of XRP?

XRP’s roadmap is focused on expanding its use in institutional decentralized finance (DeFi), improving connections between different blockchain networks, and bringing real-world assets (RWAs) onto its platform. Key upcoming milestones include:

1. EVM Sidechain Launch (Q4 2025) – A new sidechain compatible with Ethereum’s technology, powered by Axelar, to connect with Ethereum and Cosmos blockchains.
2. Ripple USD Stablecoin Expansion (Q1 2026) – The RLUSD stablecoin will launch in Japan through a partnership with SBI Holdings.
3. XRPL 3.0 Upgrades (2026) – New features like built-in lending and Multi-Purpose Tokens (MPTs) will be added to the XRP Ledger.
4. RWA Tokenization (2026) – Collaboration with Archax to tokenize over $100 million in real-world assets such as commodities and bonds.

Deep Dive

1. EVM Sidechain Launch (Q4 2025)

Overview:
The XRP Ledger (XRPL) plans to launch a sidechain that supports Ethereum Virtual Machine (EVM) compatibility. This means developers who build on Ethereum or Cosmos blockchains will be able to create applications on XRPL more easily. This new sidechain, developed with Axelar, will replace the older XLS-38d bridge once approved by the XRP community. It will enable interoperability with more than 55 blockchain networks (XRP Ledger Apex 2024).

What this means:
This is positive for XRP because it can attract developers and projects from other blockchain ecosystems, increasing the usefulness of XRPL. However, there are risks such as potential delays in community approval or technical challenges.

2. Ripple USD Stablecoin Expansion (Q1 2026)

Overview:
Ripple’s RLUSD stablecoin, which is already available on XRPL and Ethereum, will expand into the Japanese market through a partnership with SBI Holdings. RLUSD is backed by U.S. Treasury securities and bank deposits, and undergoes monthly audits to ensure transparency (0xPhantomDefi).

What this means:
This expansion supports XRP’s role in institutional finance by increasing demand for XRP as a bridge currency in cross-border transactions. However, stablecoins face ongoing regulatory scrutiny, which could impact growth.

3. XRPL 3.0 Upgrades (2026)

Overview:
The upcoming XRPL version 3.0 will introduce new features like protocol-level lending, which allows loans that comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. It will also add Multi-Purpose Tokens (MPTs), enabling semi-fungible tokens useful for financial products like bonds (U.Today).

What this means:
These upgrades make XRPL more attractive to institutional users and position it as a competitor to Ethereum’s DeFi ecosystem. Still, the success depends on how quickly developers adopt these features and how regulators respond.

4. RWA Tokenization (2026)

Overview:
Ripple is working with Archax to bring real-world assets—such as commodities and bonds—onto the XRPL by tokenizing them. This effort aims to handle over $100 million in tokenized assets, using XRPL’s compliance features like freeze controls and on-chain proof of regulatory status (XRP Ledger Apex 2024).

What this means:
This development could greatly increase XRP’s use in traditional finance by providing a secure, compliant way to manage assets on the blockchain. However, it depends on whether institutions trust blockchain custody solutions.

Conclusion

XRP’s roadmap is centered on connecting traditional finance with blockchain technology through improved interoperability, stablecoins, and real-world asset tokenization. While these technical upgrades could establish XRPL as a leading regulated DeFi platform, challenges like regulatory approval and adoption speed will be key. The success of RLUSD’s expansion and RWA tokenization will be critical to unlocking the institutional liquidity XRP needs to grow.

What updates are there in the XRP code base?

XRP’s software recently got important updates that improve privacy, security, and features designed for businesses.

1. Zero-Knowledge Privacy Integration (October 30, 2025) – The XRP Ledger (XRPL) now supports private transactions using Zero-Knowledge proofs.
2. XLS-86 Firewall Proposal (September 13, 2025) – New customizable security rules help protect wallets from unauthorized access.
3. Token Escrow & Batch Transactions (June 24, 2025) – Better tools for managing tokens and handling multiple transactions at once, useful for decentralized finance (DeFi) and enterprises.

Deep Dive

1. Zero-Knowledge Privacy Integration (October 30, 2025)

Overview: The XRPL added Zero-Knowledge Proofs (ZKPs), a technology that lets users make transactions without revealing who sent or received funds, or how much was sent. Three new transaction types were introduced:

• ZkDeposit: Lock tokens in private pools.
• ZkWithdraw: Withdraw tokens privately.
• ZkPayment: Send XRP confidentially.

This upgrade is inspired by Zcash’s privacy model and makes XRPL a stronger option for businesses and users who need secure, private transactions.

Why it matters: This is a positive development for XRP because it solves privacy concerns that have existed for a long time. It could attract institutions and users who want discreet transactions, especially in regulated industries like finance and healthcare.
(Source: Bitcoinist)

2. XLS-86 Firewall Proposal (September 13, 2025)

Overview: The XLS-86 amendment, proposed by Validator Vet, lets users set custom rules for their wallets. For example, users can limit daily transaction amounts or approve only certain addresses. This helps protect wallets even if private keys are stolen.

Why it matters: This update is somewhat positive for XRP. It improves security for both everyday users and institutions. However, it depends on whether validators agree to adopt it. If implemented, it could reduce losses from scams and increase trust in XRPL’s security.
(Source: Bitcoinist)

3. Token Escrow & Batch Transactions (June 24, 2025)

Overview: The XRPL 2.5.0 update introduced:

• Token Escrow: Allows locking non-XRP tokens (like the RLUSD stablecoin) for scheduled releases.
• Batch Transactions: Lets users combine up to 8 operations (such as swaps or payments) into one atomic transaction.
• Permissioned DEX: Enables restricting access to decentralized exchanges for regulatory compliance.

Why it matters: This is a strong positive for XRP. These features make managing complex DeFi activities and institutional assets easier. Token escrow supports things like vesting schedules, and batch transactions help developers save time and reduce costs when building apps.
(Source: CoinMarketCap)

Conclusion

XRP’s technology is evolving into a privacy-focused, business-friendly platform with advanced privacy tools, detailed security controls, and improved DeFi capabilities. While these upgrades fill important gaps in privacy and compliance, the speed at which validators adopt proposals like XLS-86 will be crucial. The big question remains: how quickly will companies start using these tools to bring real-world assets onto the XRPL?