Key Insights:
- XRP’s price dropped 17.58% in November despite an average historical growth rate of 80.3% for the month.
- The burn rate jumped 31% in 24 hours as the community acted to reduce supply and counter market pressure.
- Institutional accumulation and ETF inflows signal potential long-term support despite short-term volatility.
XRP recorded a sharp decline of 17.58% over the past 30 days, despite historic trends that typically show November as a strong growth month. The token, often favored for its utility in cross-border payments, faced mounting selling pressure that erased investor expectations of a rally. Historically, XRP has averaged an 80.3% growth in November, heightening disappointment in the market performance.
In an effort to counter the downward pressure, the XRP community increased the token’s burn rate significantly. Data from CryptoQuant indicates a 31% rise in burned tokens within 24 hours. The number of XRP tokens burned surged from 540.11673 on November 25 to 708.840438 on November 26. This sharp increase reflects a community-led attempt to reduce supply and stabilize the token’s price trajectory.
Slight Price Uptick Follows Burn Activity
Following the uptick in burn activity, XRP posted a modest 0.76% price increase within 24 hours, moving from $2.15 to $2.18. Although the gain was slight, it marked a potential turning point. However, trading volume remained under pressure, falling by 3.46% to $3.89 billion. Analysts suggest that for XRP to stabilize and shift momentum, the asset needs to breach the $2.25 resistance level and hold that position.
Amid market turbulence, institutional demand for XRP appears to be growing. Whale Alert reported a transfer of over 110 million XRP, worth roughly $224 million. This activity may signal accumulation by large entities preparing for long-term holding or strategic repositioning.
Interest in XRP exchange-traded funds has also risen sharply. Over a 48-hour window, XRP-linked ETF products attracted $199 million in inflows. This level of demand has the potential to influence both retail sentiment and price movement, provided momentum continues.
