XRP is ending December under pressure, trading at around $1.85, down around 15% from the previous month. However, analysts argue that the weakness could also be masking greater volatility. With a $7.1 trillion global options expiry about to run out, market observers imagine forced position liquidations could drive crypto prices higher – potentially ushering in a revaluation period for XRP into 2026.
The XRP options expiration focuses on leverage. ETF inflows diverge from the broader market
XRP/USD every day price chart. Source: CoinMarketCap
Market analyst Zach Rector said that XRP's capped motion reflects derivatives pressure relatively than waning demand. He expects a brief move lower to cut back excessive leverage, followed by a recovery that would put XRP on a path toward the $3-$5 range by 2026 if adoption and institutional inflows proceed.
Source: YouTube
The XRP options expiration focuses on leverage
Rector pointed to the dimensions of the upcoming options expiry – spanning global markets – as a short-term catalyst that would force major traders to cut back risk. In this scenario, XRP could fall into the $1.60-$1.70 range as leveraged long positions unwind. He described such a move as a short lived shakeout and argued that it will represent a realignment relatively than a structural collapse.
Derivatives-driven volatility was a recurring feature of XRP trading this quarter, with price movements often independent of spot demand.
Ripple executives proceed to find out XRP's long-term value based on utility. David Schwartz has reiterated that XRP's health must be measured by its liquidity depth and real financial usage, noting that the asset has high global liquidity designed for settlement and cross-border activities. This focus is increasingly gaining traction amongst institutional allocators who value blockchain assets as infrastructure relatively than speculative trading.
Source: X
ETF inflows diverge from the broader market
Institutional behavior supports this view. While Bitcoin and Ethereum exchange-traded products have experienced intermittent outflows, spot XRP ETFs have seen uninterrupted demand since their launch in mid-November.
Products from issuers, including Canary Islands capitalBitwise, Franklin Templeton, Grayscale and 21Shares have collectively generated roughly $1.14 billion in net inflows, with assets under management at nearly $1.25 billion. The group has yet to record a single day of net outflows, suggesting that selling pressure has been absorbed sustainably.
The CEO of Canary Capital said that the initial inflows got here mainly from retail investors. He added that inquiries from pension funds and insurance firms are increasing.
Source: X
Meanwhile, the mood in retail stays cautious. Data from Holy shows increased negative social media comments surrounding XRP. In the past, similar sentiment extremes have coincided with local recoveries when institutional accumulation continued despite retail skepticism.
Looking further ahead, analysts also see Japan as a possible catalyst for adoption. Japanese banks are already working with Ripple SBI holdingsand XRP has been tested for cross-border transfers in parts of Asia.
Source: X
While no policy change has been confirmed, proponents argue that continued exchange rate volatility could increase demand for neutral settlement assets, supporting gradual, utility-driven demand relatively than speculative spikes.
