Ripple’s native cryptocurrency, XRP, fell below the $1.50 price support level, dropping to approximately $1.35 despite receiving around $18 million to $19 million in net spot ETF inflows. A broader digital asset sell-off, ongoing profit-taking, and a drop in open interest across derivative platforms drove the decline. While institutional demand via exchange-traded funds remained active, sell-side volume on spot trading venues overwhelmed incoming funds.
XRP broke below a major psychological support barrier at $1.50, slipping to near $1.35 as general selling pressure spread across cryptocurrency markets.
The price decline occurred despite sustained capital entering newly launched spot XRP exchange-traded funds (ETFs). The contrast between institutional fund buying and spot market price declines highlights a gap between long-term fund allocation and immediate market liquidity.
Market data indicates that institutional demand through regulated investment products failed to absorb wider selling activity:
ETF Capital Inflows: Spot XRP funds recorded millions in fresh net daily inflows, keeping cumulative investment totals above $1.6 billion.
Derivatives Position Unwinding: Futures market open interest declined significantly from previous highs, pointing to reduced leverage and widespread position closing among traders.
Market-Wide Weakness: Key digital assets, including Bitcoin and Ethereum, also registered price drops, pulling the wider altcoin market down.
Chart Patterns: Technical indicators, including moving averages and relative strength metrics, pointed toward strong short-term bearish momentum.
While lower buying demand appeared near the $1.35 to $1.40 range, trading volume decreased, and no definitive technical reversal signal emerged.
Exchange-traded funds allow traditional institutional investors to gain exposure to digital tokens without holding raw crypto assets directly in private wallets. When an ETF receives net inflows, fund managers acquire spot tokens on public venues or via OTC networks to match shares created.
However, ETF creation purchases represent only one component of global order book depth. If existing token holders, short sellers, and derivative liquidations generate greater net supply than ETF issuers require, market spot prices continue to drop regardless of daily fund growth.
XRP’s drop below $1.50 emphasizes the difference between fund accumulation and broader spot trading dynamics. Although steady ETF inflows demonstrate institutional interest in XRP, broader market downturns and liquidations in the futures market continue to dictate short-term price movements.
