XRP Price Slips Despite ETF Demand

What to Know:

• Key takeaway #1 — XRP fell below $2 after a six-day correction, despite positive signals from ETF inflows and on-chain activity.
• Key takeaway #2 — $1.28 billion cumulative ETF inflows and a surge in XRP Ledger transactions to a six-month high failed to lift investor sentiment.
• Key takeaway #3 — Traders should watch the $1.80 support level; a break below could signal a deeper correction, influencing institutional sentiment.

XRP experienced a drop below the $2 mark following a six-day correction, even as positive developments like increased ETF inflows and heightened on-chain activity on the XRP Ledger were observed. The price decline highlights a disconnect between fundamental indicators and market sentiment. Investors are closely watching key support levels to gauge the potential for further downside risk in XRP.

XRP Price Under Exchange Reserves Surge

XRP’s recent correction saw it breaching the $2 psychological level, marking a six-day slide. This downturn mirrored broader market weakness, with Bitcoin and Ether also facing downward pressure due to renewed trade war anxieties sparked by U.S. President Trump’s tariff threats. The resulting risk-off sentiment led to significant liquidations across the crypto market, impacting numerous traders.

Specifically, XRP experienced $39.5 million in long liquidations, the highest since November 2025. This occurred as demand for XRP derivatives weakened, falling by 21.7% from its yearly high. The decline in open interest for XRP futures could further exacerbate price declines, echoing trends observed in October 2025. These factors collectively contribute to the current bearish outlook for XRP.

XRP Price Ignores ETF Demand, Onchain Activity

Despite the recent price correction, institutional sentiment toward XRP remains relatively positive, as evidenced by consistent inflows into U.S.-based XRP spot ETFs. These ETFs have collectively accumulated $1.28 billion in inflows, with total assets exceeding $1.52 billion. Franklin XRP ETF (XRPZ) has been a notable performer, attracting significant inflows and increasing its net assets.

Furthermore, on-chain activity on the XRP Ledger has surged, with transactions reaching a six-month high. The number of transactions executed on the XRP Ledger soared to 2,575,561, levels not seen since July 2025. Despite this robust network usage and persistent ETF demand, the price of XRP has underperformed, dropping 18.5% from its eight-week high, indicating a disconnect between fundamental strength and market valuation.

What Factors Are Influencing XRP Volatility?

XRP’s volatility is influenced by a combination of factors, including broader market sentiment, regulatory developments, and macroeconomic trends. The recent price correction was triggered by renewed trade war fears, which sparked a risk-off environment across financial markets. Additionally, regulatory scrutiny and legal challenges surrounding XRP can contribute to price swings, as investors react to news and announcements.

Moreover, changes in institutional sentiment and trading activity can impact XRP’s price volatility. For example, a decrease in demand for XRP derivatives or an increase in exchange reserves could signal bearish sentiment and lead to price declines. Monitoring these factors can provide insights into the potential drivers of XRP volatility and help investors make informed decisions.

How Are ETF Flows Affecting XRP’s Price?

ETF flows can exert a significant influence on XRP’s price, as they reflect institutional demand and investor sentiment. Consistent inflows into XRP spot ETFs typically indicate positive sentiment and can provide upward price pressure. Conversely, outflows from these ETFs may signal bearish sentiment and lead to price declines. The size and frequency of ETF flows can amplify price movements in XRP.

The recent inflows into XRP ETFs, totaling $1.28 billion cumulatively, suggest strong institutional interest in the cryptocurrency. However, these inflows have not been sufficient to offset the broader market weakness and negative sentiment stemming from trade war fears. Monitoring ETF flows can provide valuable insights into the level of institutional support for XRP and its potential impact on price.

XRP Price Must Hold $1.80

Currently, the XRP/USDT pair is testing a daily order block around $1.96, a level with strong support. Cost basis distribution data reveals that over 1.78 billion XRP were acquired around this level in the past six months. The next significant support lies between $1.78 and $1.80, where investors bought approximately 1.84 billion XRP. Bulls must defend this level to prevent a deeper correction.

A break below this support could lead to a drop toward the green zone, supported by the $1.61 local low and the 200-week exponential moving average (EMA) at about $1.41, representing the last line of defense for XRP. Unfortunately for the bulls, XRP’s downside momentum is increasing based on the relative strength index (RSI), which has hit its lowest level in 2026.

What Does Derivatives Data Indicate About XRP?

Derivatives data offers insights into market sentiment and potential price movements for XRP. A decline in open interest for XRP futures, as observed recently, can suggest weakening demand and potential for further price declines. Monitoring funding rates, which reflect the cost of holding long or short positions, can also provide clues about market bias. Positive funding rates typically indicate bullish sentiment, while negative rates suggest bearish sentiment.

Additionally, analyzing the volume and composition of options trading can reveal information about investor expectations and risk appetite. For instance, a surge in put options (bets that the price will decline) relative to call options (bets that the price will increase) could signal growing bearishness. Keeping track of derivatives data can help traders and investors gauge the prevailing sentiment and anticipate potential price swings in XRP.

Despite positive ETF inflows and on-chain activity, XRP’s price has faced downward pressure due to broader market concerns. Monitoring key support levels and derivatives data will be crucial for gauging future price movements.

Related: XRP, Bitcoin, Ethereum Forecasts Signal Key Levels

Source: Original article