XRP Rally Driven by Institutional Flows Faces Low Volume, Bearish Signals

XRP has experienced a recent price rally near the $3 mark, driven largely by institutional flows and increased futures open interest, signaling growing market participation from larger players. Despite this bullish momentum, experts warn that the overall trading volume remains relatively low and concentrated, which raises concerns about liquidity, potential market manipulation, and the sustainability of the breakout. On-chain data shows that long-term holders are reducing selloffs, indicating confidence, but technical indicators reveal a bearish divergence that may threaten the rally. Institutional buying has been supported by volume spikes and strong support levels around $2.98, with analysts projecting possible upside toward $3.60 if momentum continues. However, broader retail adoption of XRP remains limited, as evidenced by wallet data showing only 1 in 5,000 people globally hold XRP and a lack of mainstream awareness outside dedicated crypto communities. This combination of institutional interest amidst thin liquidity and limited retail engagement suggests that while XRP's rally is promising, it remains vulnerable to volatility and sudden reversals.