## XRP in consolidation phase – where should traders focus?

The current XRP situation is a classic example of divergence between institutional actions and market sentiment. Although the price hovers around $1.97 – nearly 40% below this year's high – institutional investors are consistently accumulating positions. For traders who are just starting their journey into cryptocurrency markets, this situation provides a valuable educational signal on how to read the market beyond just price movements.

### Where to look for support – critical zones for traders

Investors need to be prepared for several scenarios. The support zone around $1.85 is the first line of defense. If the price breaks below this level, the next support zone is significantly lower – around $1.70. On the other hand, a breakout above resistance at $2.05 could signal that the downtrend is losing momentum. These levels are especially important for traders learning to identify key entry and exit points.

### ETF XRP inflows speak louder than the price

Data shows that the flow of funds into the XRP ETF remains consistently positive. Yesterday, approximately $10.89 million flowed in, raising the ETF's net assets to $1.12 billion. Importantly – since mid-November, there have been no significant outflows. Even during increased market volatility, buyers are not abandoning their positions. This determination suggests strategic accumulation, which experienced traders observing capital flows may follow.

### Technical signals are beginning to stabilize

Momentum indicator analysis reveals an important detail. The MACD histogram is clearly converging, with the MACD and signal lines moving closer together. This compression is often a precursor to changes in market dynamics. Although sellers remain active, their strength is noticeably waning. For traders, this indicates that we are waiting for a breakout moment – a point where balance could tip.

### History repeats itself – when institutions buy, the market changes

The analogy to previous ETF cycles is instructive. When funds systematically bought during dips, and retail sentiment was pessimistic, subsequent rebounds were spectacular. The current XRP scenario reflects this pattern. Institutions operate quietly, while retail investors remain cautious. This asymmetry often precedes significant price movements.

### Reversal points to watch

If daily ETF inflows consistently exceed $15 million, it could become a catalyst for a stronger upward move. At the same time, maintaining support at $1.85 will show whether institutional accumulation is truly protecting the market. For traders learning to analyze the market, this period is an ideal opportunity to observe how capital flows precede price movements.

Summary: XRP remains in a transitional phase, but the gathered evidence – continuous ETF inflows, stabilizing momentum, and support protection – suggests that the bearish market may soon weaken. The key for every trader is to observe these three elements simultaneously.