XRP News Today: XRP ETFs Draw $643 Million in Investments, Yet Price Fails to Surpass $2.60 Barrier

XRP Faces Pivotal Moment Amid Surging ETF Interest

XRP is at a crucial crossroads as it nears an important monthly close, with institutional appetite for XRP exchange-traded funds (ETFs) accelerating even as market turbulence persists. According to SoSoValue, XRP ETFs attracted $643.92 million in net inflows during their first month, representing 0.5% of the token’s total market value. This surge has been fueled by major players such as Grayscale, Franklin Templeton, Bitwise, and Canary, whose combined efforts have pushed ETF-held XRP above half a percent of the circulating supply—an early sign of significant institutional involvement.

These inflows reflect a broader shift in institutional strategies. As highlighted by Xaif on X, daily net inflows have reached $164 million, with total ETF assets now exceeding $628 million, pointing to swift adoption by large investors.

Despite this influx of institutional capital, XRP’s price has shown mixed performance, hovering near $2.20 even after record-breaking ETF launches. Notably, Franklin Templeton’s XRPZ and Grayscale’s GXRP saw a combined $164 million in opening-day investments, yet this failed to sustain upward price momentum. Meanwhile, derivatives markets reported a $1.7 billion decrease in open interest on Binance, and large holders, or “whales,” have reportedly sold off 180 million XRP tokens, adding to short-term selling pressure.

Analysts warn that while ETF inflows have tightened the available supply and heightened market tension, XRP’s ability to maintain crucial technical levels will be key in determining its short-term direction.

Key Technical Levels to Watch

• A monthly close above $2.60 would place XRP above the 0.5 Fibonacci retracement, signaling potential bullish momentum.
• A move past $3.40 could indicate a significant breakout.
• Conversely, closing below the 21-month EMA could threaten long-term support and investor confidence.

Analyst EGRAG Crypto has stressed the importance of these thresholds, noting that continued institutional inflows must offset recent whale sell-offs and unwinding of leveraged positions in derivatives to maintain a positive outlook.

Looking Ahead: New ETF Launches and Market Signals

The upcoming introduction of 21Shares’ XRP ETF adds further uncertainty. With institutional investments in XRP already totaling $666 million, this new product could bring additional liquidity to a market still wrestling with volatility. However, traders remain cautious: while ETF inflows point to growing institutional trust, technical indicators like the RSI and MACD remain neutral, suggesting the possibility of a consolidation period.

As XRP approaches its monthly close, the balance between institutional demand and underlying market fundamentals will be decisive. Continued strong inflows and successful ETF launches could strengthen XRP’s standing in regulated markets, but any breach of key support levels may prompt a reassessment of its long-term adoption prospects.