Analysts see XRP rebounding toward $5-$12 if ETF-driven supply shock hits.
XRP price has become the focal point of heated debate after the token slid roughly 15% over the past month while the Bitcoin price barely moved.
Market commentators and analysts are asking why XRP would suffer such a steep pullback when the broader market appeared comparatively steady.
The answer, they say, lies in correlation dynamics, liquidations, regulatory lag and nascent institutional activity.
In October, both Bitcoin and XRP rallied, with Bitcoin staying above the six-figure levels and XRP flirting with the $3 mark.
Profit-taking followed quickly, and altcoins absorbed most of the pain.
Traders who had piled into XRP were hit especially hard; one stretch of trading erased about $8.13 million of leveraged positions within four hours.
That sequence amplified losses and sent XRP below the $2.50 support level it had failed to hold after the upswing.
Charles Gasparino, a senior correspondent known for market coverage, spotlighted the paradox: Bitcoin fell only about 1% over the month, yet XRP plunged around 15%.
The contrast underscores a structural reality where XRP has historically tracked Bitcoin’s moves but with greater intensity.
When BTC stumbles or consolidates, that sensitivity can turn into outsized downside for XRP.
Beyond short-term mechanics, a longer-term narrative is reshaping investor expectations.
Analyst Zach Rector has argued that the launch of multiple spot XRP exchange-traded funds and similar institutional vehicles could effectively remove a substantial portion of circulating supply from the market.
According to Rector, that “supply shock,” Rector says, would create the conditions for a dramatic price re-rating, with conservative models pointing to targets ranging from $5 up to double-digit territory — even as high as $12 by December 2025.
The regulatory backdrop also matters. Bitcoin and Ethereum have benefited from cleared paths to ETF adoption that flooded both markets with fresh capital.
XRP, by contrast, still faces an unresolved approval picture for spot ETFs in many jurisdictions.
That delay has likely depressed demand from risk-averse institutional buyers and made the token more sensitive to retail flows and sentiment shifts.
At the same time, data points show growing institutional interest via derivatives: CME-listed XRP and Micro XRP futures have recorded substantial contract volumes over recent months, a sign that professional desks are increasingly engaging the token.
From a technical analysis standpoint, the $2.30 area acted as a concrete support during mid-month liquidations, and the bounce to around $2.50 suggests buyers remain interested at those prices.
A sustained break above $3.40 would, in many analysts’ views, open a path toward $5.5, and if ETF-driven supply lockups occur, upside to substantially higher levels becomes plausible.
On-chain signals constructively complicate the picture.
The XRP Ledger is approaching a major transaction milestone, nearing 100 million recorded transfers.
That activity signals ongoing utility and adoption within payments and DeFi niches where XRP has carved a role.
Such resilience in on-chain throughput can buttress confidence even when price action looks shaky.
Assessing the path forward means weighing an array of forces: correlation-driven volatility, liquidation dynamics, regulatory clarity, and institutional adoption through derivatives and potential ETFs.
Short-term traders must manage the heightened risk that comes with XRP’s amplified moves.
Long-term investors, on the other hand, should watch ETF developments and on-chain adoption as the main levers that could catalyse the next leg of momentum.
