A striking divergence is unfolding in the XRP market. As the digital asset’s price faces weekend pressure, trading near $2.03, a clear split in investor behavior has emerged. Data reveals retail participants are selling off holdings amid uncertainty, while institutional investors are strategically using the price weakness to build positions. This trend is most evident in the recently launched spot ETFs, which continue to see daily inflows and are approaching a collective $1 billion in assets under management.
Record Inflows Defy Price Weakness
The XRP token has declined by approximately 8% over the past seven days, testing the psychologically significant $2.00 level. A breach below this point could see the price target the next major support zone around $1.85.
Contrasting this price action, institutional participation tells a different story. Spot ETFs for XRP, including offerings from Canary (XRPC), Grayscale (GXRP), Bitwise, and Franklin Templeton (XRPZ), have not recorded a single day of net outflows since their launch. Notably, a net inflow exceeding $10 million was recorded last Friday alone, even as prices fell. This pattern suggests a classic market transfer: short-term, sentiment-driven investors are capitulating, while long-term, strategic buyers are accumulating. Current sentiment analysis places the market in a “fear” phase, a condition historically known to precede potential trend reversals.
Technical and On-Chain Metrics Show Strength
Beneath the surface price volatility, the XRP Ledger demonstrates robust health. Network transaction speed recently hit a 2025 high of 0.0324, indicating elevated blockchain utilization and active token movement rather than passive holding.
The derivatives market presents another insightful dynamic. Aggregate open interest stands at roughly $3.85 billion, yet funding rates are negative. This configuration shows a large cohort of traders is positioned for further price declines. An unexpected upward price move could trigger a short squeeze, potentially amplifying volatility.
Should investors sell immediately? Or is it worth buying XRP?
Geographic distribution of holdings adds another layer. The South Korean exchange Upbit holds over 6 billion XRP, more than double the 2.6 billion held on Binance. This significant concentration in the Asia-Pacific region substantially influences liquidity and price discovery.
Ecosystem Expansion Amid Regulatory Clarity
Beyond short-term price movements, Ripple continues to advance its ecosystem. The launch of the RLUSD stablecoin represents a critical development aimed at boosting liquidity and enabling more stable settlements within the XRP Ledger’s DeFi sector. This initiative is part of a broader, announced $4 billion expansion strategy.
The regulatory overhang that weighed on XRP for years has largely dissipated. The approval and subsequent growth of regulated ETF products mark a pivotal shift for the asset—from legal challenges to acceptance and integration within traditional financial frameworks.
The immediate technical focus rests on whether the support band between $1.85 and $2.00 will hold. A sustained breakout above this range could set sights on the next resistance level near $2.20. Underpinning the market, however, are strong fundamentals evidenced by high network activity and persistent institutional inflows, suggesting the asset’s foundation remains solid even as it navigates short-term market turbulence.
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