XRP has declined for four consecutive sessions, falling to $1.1305 as of Thursday, even as institutional demand via exchange-traded funds (ETFs) remained resilient. The token is now trading well below its weekly high of $1.2875, mirroring a broader pullback across the cryptocurrency market.
ETF Inflows Signal Institutional Confidence
Data from SoSoValue indicates that XRP ETFs attracted $10.6 million in net inflows this week, following a similar amount last week. Month-to-date inflows stand at $23 million, pushing cumulative inflows since the funds' approval to over $1.45 billion. This contrasts sharply with spot Bitcoin ETFs, which have seen $226 million in outflows this week and $2.26 billion this month. Ethereum ETFs have also experienced outflows of $198 million this week.
The persistent inflows into XRP ETFs suggest that some institutional investors view the recent price decline as a buying opportunity. However, the token has still fallen approximately 40% from its yearly highs.
Network Activity Declines Despite Stablecoin Growth
While ETF demand remains robust, activity on the XRP Ledger continues to weaken. According to XRPScan, daily payments on the network have dropped to 452,000, the lowest level since October 2024. Active addresses and the network's burn rate have also declined.
The decentralized finance (DeFi) ecosystem on XRP Ledger has contracted significantly. Total value locked (TVL) has fallen to $39 million, down from a peak of over $100 million. Quarterly fees generated by the network have plummeted to just $43,000, the lowest in years, compared to $1.4 million in 2024.
The one bright spot is the growth of Ripple USD (RLUSD), the network's stablecoin. Its supply has risen to $784 million, driven by ongoing demand. This growth highlights Ripple's focus on stablecoin adoption, even as other network metrics falter.
Technical Analysis Points to Further Downside
From a technical perspective, XRP has broken below the key support level of $1.2748, which had held as a floor in February, April, and May. The token is now trading below its 50-day and 100-day exponential moving averages (EMAs). The MACD indicator remains below the zero line, and the Relative Strength Index (RSI) continues to trend lower.
The next major support level is at $1.00, a psychological threshold that could attract buyers if tested. The path of least resistance appears bearish in the near term.
For context, similar patterns have been observed in other assets. For instance, Solana Bulls Target $85 as ETF Inflows Reverse Last Week's Outflow Streak highlights how ETF flows can influence price action. Meanwhile, XRP Drops to $1.11 Despite $4M ETF Inflows: Why Institutional Buying Isn't Lifting Prices explores a similar disconnect between ETF demand and spot price performance.
Investors should monitor whether ETF inflows can stabilize XRP or if declining network activity will continue to weigh on sentiment.
This article is for informational purposes only and does not constitute financial advice.
