XRP Faces Institutional Withdrawals, Heightened Market Risks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: Coinmarketcap
- Market Weakness Signal: XRP struggles to surpass $2.00, currently at $1.91, with analyst Kaan Kaya indicating a digestion phase in the market under bearish pressure, necessitating close monitoring of its momentum recovery potential.
- Institutional Capital Exit: A record $53 million outflow from spot XRP ETFs in a single day, primarily due to Grayscale redemptions, highlights a sudden retreat of institutional capital, increasing short-term uncertainty in the market.
- Cautious Derivatives Market: Open interest in the derivatives market has fallen to $3.35 billion, a monthly low, with reduced leverage limiting short-squeeze potential, leaving XRP vulnerable to organic selling amid weak trading activity.
- Fragile Support Levels: The decline in institutional demand and derivatives exposure renders XRP's support levels fragile, with the market lacking new capital inflows or bullish catalysts, leading to uncertainty in near-term price stability and potential further declines.
Analyst Views on XRP
Wall Street analysts forecast XRP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for XRP is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Analyst Rating
0 Buy
0 Hold
0 Sell
Current: 22.050
Low
Averages
High
Current: 22.050
Low
Averages
High
No data
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
