XRP Price Slumps as ETF Flows Show Weakness

What to Know:

• XRP spot ETFs experienced their first week of net outflows, totaling over $40 million.
• This shift coincides with broader market corrections and geopolitical concerns impacting crypto assets.
• Reduced ETF inflows may affect XRP’s liquidity and price, requiring traders to monitor market structure for potential breakouts.

XRP spot ETFs have recently experienced a notable shift in momentum, marking their first week of net outflows since the launch of such investment vehicles. This development coincides with a broader market correction affecting various crypto assets. As XRP navigates this evolving landscape, investors are closely monitoring its price action and potential catalysts for future growth.

ETF Inflows Turn Negative

After a strong start, XRP spot ETFs registered their first week with more net outflows than inflows. Data indicates a total outflow of $40.64 million over the past week, a stark contrast to the nearly $57 million inflow the week prior. This reversal breaks a sustained period of net inflows since the debut of the first XRP ETF in mid-November. The cumulative net inflows for XRP ETFs have decreased from a peak of $1.28 billion to $1.23 billion.

XRP Price Reacts

The price of XRP has mirrored the ETF outflow trend, experiencing a correction after an initial surge in early 2026. After climbing from under $1.90 to $2.40, XRP faced rejection and subsequently declined to around $1.90. This price movement reflects the broader market’s sensitivity to geopolitical tensions and overall risk sentiment.

Analyst Sentiment

Market analysts are closely observing XRP’s price action for potential breakout patterns. One analyst noted that XRP has returned “within the convergence after a fake breakout,” suggesting that a breakout from the current pattern could signal a rally. However, the near-term performance hinges on price movements over the weekend.

Contrarian Indicators

Data from Santiment indicates that traders have turned bearish on XRP. Historically, such bearish sentiment can act as a contrarian indicator, potentially paving the way for a price surge in the near future. This highlights the importance of monitoring market sentiment and positioning for potential trend reversals.

Broader Market Context

The recent pullback in XRP and the outflows from its spot ETFs coincide with a challenging period for the broader crypto market. Tuesday marked the worst trading day for crypto ETFs since their inception, reflecting increased risk aversion among investors. These market dynamics underscore the interconnectedness of various crypto assets and the influence of macroeconomic factors.

Conclusion

XRP is currently navigating a period of adjustment as its spot ETFs experience net outflows and its price corrects. Market participants are closely monitoring technical indicators and sentiment data for signs of a potential rebound. The interplay between ETF flows, price action, and broader market dynamics will likely shape XRP’s trajectory in the coming weeks.

Related: XRP Bear Trend Signals Further Drop

Source: Original article