XRP News Today: ETF Hopes Fade as Reclassification Fears Hit XRP

XRP came under heavy selling pressure, extending its losing streak to three sessions. The fourth quarter crypto meltdown sent XRP to a Friday, November 21, low of $1.8205 as $1.28 trillion came off the table from October 1 to November 21 (peak to trough).

Several key events set the bear trap, including:

• The US government shutdown: October 1 to November 13.
• Trump’s threat to hike tariffs on Chinese shipments by an additional 100%: October 10.
• Hawkish Fed Chair Powell press conference: October 29.
• Fading bets on a December Fed rate cut: November.

Crucially, these adverse market forces overshadowed key price catalysts, including the highly anticipated launch of XRP-spot ETFs.

Fed Policy Shift Sparks XRP Rebound but November Losses Persist

On Friday, November 21, markets revived bets on a December Fed rate cut, triggering a rebound to $1.95. NY Fed President and FOMC voting member John Williams raised the chances of a December rate cut, increasing from 39.1% on Thursday, November 20, to 69.3% on Friday, November 21.

However, XRP remains deep in negative territory for November, down 22%, despite the US government reopening, the US-China trade truce, and the rebound in bets on a December Fed rate cut.

FundStrat: Liquidity Shock Still Unwinding

FundStrat Capital Chief Investment Officer Tom Lee spoke about the October 10 flash crash on November 8, stating:

“The October 10 deleverage was the biggest in history, and that means there are still ripple effects being felt even two weeks later. […] So, I’d say it’s probably still a couple more weeks.”

MSCI Consultation Triggers Market Capitulation

However, on November 21, analysts attributed the market capitulation to the potential reclassification of digital asset treasury companies (DATs) to funds. The classification of listed companies, such as Strategy (MSTR), could have dire consequences for Bitcoin (BTC) and ultimately, the broader crypto market. XRP’s close correlation with BTC exposed the token to the MSCI news.

Strategy founder and chairman Michael Saylor reacted to the MSCI consultation, stating:

“Strategy is not a fund, not a trust, and not a holding company. We’re a publicly traded operating company with a $500 million software business and a unique treasury strategy that uses Bitcoin as productive capital. Funds and trusts passively hold assets. Holding companies sit on investments. We create, structure, issue, and operate.”

The Kobeissi Letter reported on Michael Saylor’s response to the DAT classification issue, stating:

“This comes after MSCI launched a formal consultation on how to classify digital asset treasury companies (DATs). MSCI views such companies as more similar to investment funds rather than traditional operating businesses.”

The Kobeissi Letter elaborated on the consultation, adding:

“Why is this important? Investment funds and trusts ineligible for their flagship equity benchmarks like the MSCI USA Index and MSCI World Index. If the MSCI and others rule that MicroStrategy is in fact an investment fund or trust, the resulting exclusion would be market-moving. MSTR is now down 70% from its high.”

MSCI Consulation Paper Behind the October 10 Flash Crash

Crypto commentator Ran Neuner, with over 900,000 followers on X, shared a screenshot of the MSCI consultation paper. The paper, titled ‘Extension of the Consultation on Digital asset Treasury Companies’ was dated October 10, time-stamped 834 PM GMT. Notably, XRP slumped to a low of $0.7773 within 30 minutes of the MSCI consultation paper release before briefly reclaiming the $2.6 handle.

The decision on whether DATs holding over 50% of their assets in crypto should remain in major stock indices or be reclassified as funds is due on January 15, 2026. January 15, 2026, could be a defining moment for XRP, given the absence of blue-chip listed firms with sizeable XRP holdings as treasury reserve assets.

Broader Market Implications for XRP

The delisting of DATs from major indices could impact demand for BTC. Meanwhile, robust inflows into XRP-spot ETFs and crypto-friendly legislation could lift XRP. Crucially, these scenarios could see XRP decouple from BTC.

Technical Outlook: Key XRP Price Levels

XRP declined 2.38% on Friday, November 21, following the previous day’s 5.17% slide to close at $1.9509. The token underperformed the broader market, which fell 2.06%.

Friday’s extended sell-off left the token trading well below the 50-day and 200-day Exponential Moving Averages (EMAs), reaffirming bearish momentum.

Looking ahead, several events could trigger a shift in sentiment, potentially sending XRP toward $2.0.

Key technical levels to watch include:

• Support levels: $1.9112 and $1.8205
• 50-day EMA resistance: $2.4332.
• 200-day EMA resistance: $2.5455.
• Resistance levels: $2.0, $2.2, $2.35, $2.5, $2.62, $2.8, $3.0, and $3.66.

Catalysts to Watch in the Sessions Ahead

Near-term price catalysts include:

• Canary XRP ETF and Bitwise XRP ETF flows.
• Blue-chip companies’ stances on XRP as a treasury reserve asset.
• Regulatory milestones: Ripple’s application for a US-chartered bank license, the progress of the Market Structure Bill on Capitol Hill.

Bearish Scenario: Risks Below $1.9112

• XRP-spot ETFs report net outflows.
• The US Senate challenges crypto-friendly legislation, including the Market Structure Bill.
• Blue-chip companies downplay interest in XRP as a treasury reserve asset.
• OCC delays or rejects Ripple’s US-chartered bank license.

These bearish scenarios could push XRP toward $1.9112. If breached, XRP could retest the November 21 low of $1.8205. A drop below $1.8205 could expose the April low of $1.6147. Notably, XRP has continued to print lower highs and lower lows, a bearish signal.

Bullish Scenario: Path to $2.5 At Risk

• XRP-spot ETFs report strong inflows.
• Blue-chip companies purchase XRP for treasury reserve purposes.
• Ripple secures a US-chartered bank license, and the US Senate passes the Market Structure Bill.

A breakout above the $2.0 resistance level could pave the way toward $2.2. A sustained move through $2.2 may open the door to testing $2.35, with the 50-day EMA being the next key resistance level. Buyer demand at $1.9112 will be crucial, given that XRP has fallen in ten of the last eleven sessions.

Outlook: $2.0 Emerges as Critical Resistance

Bitcoin’s plunge to $80,529 on Friday, November 21, underscored market sentiment toward the MSCI consultation on DATs. XRP and the broader crypto market followed BTC deep into negative territory.

Nevertheless, XRP-spot ETF flows and the Market Structure Bill’s progress on Capitol Hill could prove crucial.

The next six weeks could determine whether XRP extends its losses or begins a recovery toward $2.5.