XRP appears positioned for a potential rebound after forming a bullish engulfing pattern on its daily chart, a classic technical signal that buyers may be stepping back in. This comes alongside notable shifts in exchange supply and ongoing institutional interest, suggesting improving sentiment for the Ripple.

Market Context & Price Action

At press time, XRP was trading around $1.88, showing resilience near key support levels despite recent market volatility. This price level resonates with broader charts showing consolidation and stabilization following earlier downturns.

The bullish engulfing pattern where a large green candlestick fully covers the prior red candle often indicates a shift from selling pressure to renewed buying interest. Technical analysts view this as one of the more reliable reversal signals when occurring near established support zones.

Exchange Reserves Decline

A key driver behind the upbeat narrative is the continued decline in XRP supply on exchanges, especially on Binance, the world’s largest crypto venue by trading volume. Third-party on-chain data show exchange balances dropping to multi-month lows, suggesting that holders are moving XRP off exchanges and potentially into long-term storage. This pattern is generally interpreted as accumulation rather than readiness to sell.

Declining exchange reserves can reduce sell pressure and provide a structural tailwind if demand begins to outpace available supply.

Strong ETF Inflows Contrast Broader Market Weakness

Institutional interest is also making headlines. Spot XRP exchange-traded funds (ETFs) reported over $68 million in net inflows this week, bringing the cumulative total above $1 billion. Interestingly, this demand surge comes at a time when Bitcoin and Ethereum ETFs have been experiencing outflows, underscoring a potential structural appetite among institutional allocators for XRP exposure.

Technical Signals

Beyond the bullish engulfing candle, XRP’s chart also shows other reversal cues, including an inverse head-and-shoulders formation, another technical structure associated with downward exhaustion and potential trend flip.

However, not all signals are unambiguously bullish. Broader market analysis from independent data sources notes that XRP remains within a defined range and must decisively reclaim and hold levels above key resistance (near the $2.00 mark) to confirm a stronger uptrend.

What Traders Are Watching

Bullish catalysts:

• Strong on-chain accumulation and shrinking exchange reserves
• Continued spot ETF inflows
• Bullish engulfing and reversal chart patterns

Risks & cautionary factors:

• XRP still trading below recent resistance levels
• Mixed broader market technicals, with some analysts warning of breakdown risks if key support fails
• Potential pressure from recent leveraged positions and liquidity trends in certain trading venues

Bottom Line:
XRP’s recent chart action and on-chain dynamics have injected fresh optimism among traders and analysts. While the bullish engulfing setup and institutional flows suggest a possible near-term rebound, decisive confirmation above critical resistance levels will be essential for a sustained move higher.

Aster (ASTER) jumped around 5% in the last 24 hours, easily beating the broader crypto market’s 1.23% gain. The token’s rise comes at a time when several positive updates have pushed fresh attention toward the Aster ecosystem.

WLFI Partnership Brings New Liquidity

Aster’s biggest boost came from its new partnership with World Liberty Financial (WLFI), a project linked to the Trump-backed USD1 stablecoin. According to a report, Aster will integrate WLFI’s USD1 directly into its decentralized exchange.

USD1 is already a large stablecoin with a $2.66 billion market cap, and bringing it to Aster could increase trading activity and attract more professional users. WLFI is also preparing to launch its RWA products in January 2026, which may add another source of liquidity and new earning opportunities on Aster.

For now, the main things to watch are how fast USD1 gets adopted on the platform and whether WLFI delivers its RWA launch on time.

ASTER Token Now Has More Uses

The second reason behind the price jump is Aster’s expanded token utility. On 5 Nov 2025, Aster introduced new benefits for ASTER holders, including:

• Using ASTER as collateral with an 80% margin ratio
• Getting a 5% fee discount when paying trading fees in ASTER

These changes give people more reason to hold the token instead of selling it. Traders who use Aster regularly now have a strong incentive to keep ASTER in their wallets, which naturally increases demand.

Perp Trading Volume Surges

Aster also saw strong interest from derivatives traders. In early December, perpetuals trading on DEXs rose 83%, and Aster captured more than $9 billion in daily volume.

However, some analysts warn that part of this activity could be linked to airdrop farmers looking for rewards rather than long-term users. Aster’s 24h turnover sits at 13.8%, compared to the market’s 5.1% average, showing strong liquidity but also higher volatility.

Can the Growth Continue?

Aster’s latest price rise shows that real partnerships, better token utility, and high trading activity can still move the market during uncertain times. But whether the momentum continues depends on a few things:

• Will USD1 see strong usage on Aster?
• Will trading volumes hold once airdrop activity slows?
• Can ASTER stay above its 7-day SMA of $1.05 while market sentiment stays in the “Fear” zone?

For now, Aster has the attention of traders—what it does next will decide if the rally sticks.

The firm’s spot XRP-backed ETF, trading under the ticker XRPC, generated approximately $58 million in trading volume on its first day of issuance the highest among any U.S. ETF launched in 2025.

XRP Institutional Access

XRPC officially began trading on the Nasdaq on November 13, offering the first-ever U.S. spot ETF tied exclusively to XRP, the native token of the Ripple ecosystem. Among the roughly 900 ETFs launched this year, XRPC’s debut volume narrowly outpaced its closest competitor the spot Solana ETF from Bitwise (BSOL), which recorded around $57 million on day one.

High Volume Despite Bearish Market Conditions

The launch day for XRPC coincided with broader weakness in crypto markets Bitcoin slipped below $99 000 and the total crypto market cap contracted. Despite the challenging backdrop, XRPC achieved robust trading activity: around $26 million traded within the first 30 minutes, and roughly $36 million by mid-morning.

What the Strong Debut Signals

• Institutional interest: The volume suggests growing demand for regulated, altcoin-focused investment products beyond BTC and ETH.
• Altcoin ETF momentum: XRPC’s performance underscores an emerging investment theme — broadening the ETF market to include tokens tied to payments and utility tokens.
• Market timing: The fact that XRPC out-performed during a risk-off day may highlight pent-up demand for XRP exposure within mainstream channels.

Interestingly, the strong ETF volumes didn’t immediately translate into token price strength. XRP experienced a sharp intraday drop of 7.3 % shortly after the launch, indicating that investor enthusiasm for the fund may not yet reflect broad buying pressure in the underlying asset.

Final Takeaway

Canary Capital’s XRPC ETF launch marks a significant milestone in crypto investing — showcasing that altcoin-specific spot funds can attract meaningful volume even during market downturns. While XRP’s underlying price reaction was muted, the volume achievement points to strong appetite among investors seeking regulated exposure to utility tokens. The next key test will be whether the fund can sustain momentum and translate it into meaningful growth in assets under management.