Analyst Reveals Whether XRP Price Could Ever Fall Back to $1
XRP price has been struggling to make significant gains despite the increasing interest in XRP exchange-traded funds. This has left many investors puzzled, especially with the buzz surrounding institutional demand and ETF inflows. On a recent episode of the Paul Barron Podcast, analyst Zach Rector shared his insights on the current market situation.
Rector mentioned that the lack of movement in XRP’s price is not unexpected, as the market is currently experiencing a “sell-the-news” phase following the launch of major ETFs. He explained that the demand for ETFs has not directly impacted XRP’s public market price because most ETF purchases are happening over the counter rather than on public exchanges.
In November, around $803 million flowed into XRP ETFs, while approximately $808 million worth of XRP was sold on centralized exchanges. The selling pressure on public exchanges has offset the demand from ETFs, resulting in the stagnant price movement of XRP.
Moreover, Rector highlighted that almost $808 million left centralized exchanges in November as investors exchanged XRP for dollars or stablecoins. This selling pressure has kept prices low despite the increasing interest in ETFs. However, he mentioned that once ETF inflows move onto exchanges, aggressive buying could potentially drive prices higher.
Looking at past market data, Rector pointed out the potential for rapid movement in XRP’s price when sentiment turns positive. In November 2024, XRP’s market cap surged by nearly $100 billion in a month due to strong inflows, while November 2025 saw a $41 billion drop in market cap due to exchange outflows. This demonstrates the speed at which XRP can move when buyers enter the market.
When asked about the possibility of XRP dropping back to $1, Rector dismissed the idea, stating that it would require a significant unforeseen event. He emphasized the deep liquidity in the market, strong passive buying, and the presence of long-term holders ready to buy on dips.
Rector also mentioned that there is strong buying interest below $2, with large buy orders already placed near current support levels. He highlighted the key levels of support that XRP has maintained throughout the year, indicating a strong foundation for potential price movements.
In conclusion, while XRP’s price may be stagnant at the moment, the underlying market dynamics suggest the potential for significant movement in the future. Investors should conduct their own research and exercise caution before making any investment decisions. Trustworthy sources like CoinPedia can provide valuable insights and updates on the cryptocurrency and blockchain industry.
