Ripple's XRP has been experiencing a fascinating divergence: robust institutional adoption and infrastructure growth are underway, yet its spot price remains stubbornly compressed. This paradox suggests a quiet accumulation phase, with fundamental strength building beneath a seemingly stagnant market.
Surging XRPL Infrastructure and RWA Growth
The XRP Ledger (XRPL) is quietly establishing itself as a significant player in the real-world asset (RWA) tokenization space, ranking as the second fastest-growing RWA network over the past 30 days, outpacing giants like Ethereum and Solana. This nearly 18% growth underscores increasing relevance in compliance-focused use cases and tokenized finance, signaling a rise in infrastructure adoption that often precedes price repricing. While the price remains unresponsive, this expansion points to a strengthening ecosystem.
Institutional Absorption and Dwindling Supply
A key factor in XRP's current dynamic is the steady absorption of tokens by institutional investors, notably through U.S. spot XRP ETFs. These ETFs are recording consistent daily inflows, contributing to a dramatic reduction in XRP supply on exchanges, which has fallen to a seven-year low of roughly 1.6 billion tokens. This institutional demand is effectively pulling XRP off the market, reducing immediate sell-side availability and creating a supply squeeze, even as overhead liquidity continues to cap upward price movement.
Price Compression and Market Indecision
Despite strong underlying fundamentals, XRP's price remains contained within a defined range, trading between $1.73 support and $2.32 resistance. Derivatives data reveals significant overhead liquidity, particularly between $2.50 and $3.20, acting as a strong resistance zone from concentrated liquidation interests. Momentum indicators like the RSI and MACD reflect this market indecision, hovering near neutral levels. The crucial question now is when, or if, this sustained ETF-driven absorption and infrastructure growth will finally translate into a significant price discovery event, requiring a breakout with expanded volume and broader market participation.
