XRP Price Prediction: Two Factors Could Help the Altcoin Reclaim the $1.2 Level

Institutional demand for XRP has been growing at an accelerating pace. One year after the first U.S. XRP exchange-traded fund (ETF) launched, these products have accumulated roughly 1.16 billion tokens. That steady accumulation, together with signs of returning U.S. investor buying, could help the altcoin reclaim the $1.2 level, according to a recent market analysis.

The ETF holdings are equivalent to about $1.15 billion, representing roughly 1.77% of XRP's market capitalization. Cumulative total net inflows stood at $1.79 billion at press time. The gap between total net assets held and cumulative net inflows reflects the token's price decline over the past few weeks. Because spot ETFs hold the underlying token rather than a derivative, sustained fund demand directly reduces the floating supply available to other buyers.

Institutional Accumulation Continues

The institutions leading XRP accumulation are Bitwise, Franklin Templeton, Canary Capital, 21Shares, Grayscale, and REX-Osprey. Their activity points to deepening institutional exposure, even though $1.09 million in capital exited as markets closed for the weekend. The mix spans dedicated crypto asset managers and traditional finance firms, and their ETF products let investors gain XRP exposure through brokerage accounts without holding the token directly — one reason fund flows are widely read as a proxy for institutional adoption.

Despite that outflow, the overall picture suggests that the altcoin's circulating supply is being absorbed at a larger scale.

U.S. Investors Return as Price Slips Below $1

While institutions have been buying, XRP itself has been falling under the weight of heavy selling. The token declined roughly 40% to $0.99, losing the psychologically important $1 level. Even so, U.S. investors appear to be returning.

The net buying trend for XRP on Coinbase turned positive over the past two consecutive days. Coinbase, a U.S.-headquartered exchange, is frequently used as a proxy for American investor flows, which makes its netflow data a closely watched gauge of domestic demand. Hourly charts showed that U.S. investors opened long positions totaling more than 4 million XRP after a period of heavy selling.

The same metric remained negative on Binance and OKX, though it traded near the neutral level. Figures on both exchanges briefly spiked above neutral before retreating shortly afterward — a signal that trader activity was gradually shifting as the price dipped below $1.

Technical Signals Suggest the Correction May Be Nearing an End

Several indicators point to a possible end of the 40% correction from $1.66 to $0.99. The TD Sequential indicator — a timing tool that flags potential trend-exhaustion points — printed a buy signal on the daily charts after two months of decline. Daily trading volume showed about 2.09 million tokens bought at press time. The Stochastic RSI, a momentum oscillator, also bounced from oversold territory to 41.64, hinting at returning buying pressure on smaller timeframes.

However, XRP remains well below its 200-day simple moving average at $1.26 — a widely watched gauge of the long-term trend — indicating that the larger trend may still be under bearish control.

According to the analysis, if $1 can be reclaimed, a recovery toward $1.15 and $1.26 could follow. Conversely, losing the $0.98–$0.99 level could expose $0.80 or lower. The ongoing correction is likely to continue unless a clear market structure flip occurs. For anyone tracking the setup, the markers to watch are whether ETF holdings keep expanding and whether the Coinbase net buying trend holds, alongside the price levels outlined above.

Summary

XRP ETFs have absorbed more than 1.16 billion tokens from the circulating supply, underscoring institutional demand. The token was trading at $0.99 as Coinbase investors returned to buying after two months of heavy selling.