XRP has seen its price decline for four consecutive days, despite sustained investor interest in its exchange-traded funds (ETFs) this week. The cryptocurrency dipped to $1.1305, a notable drop from its weekly high of $1.2875, mirroring a broader downturn across the digital asset market.
Resilient XRP ETF Demand Contrasts Broader Market Trends
Data indicates a persistent demand for XRP ETFs, even as the overall cryptocurrency market experiences a pullback. These funds attracted $10.6 million in new assets this week, following a similar influx the previous week. This month, cumulative inflows have reached $23 million, pushing the total assets under management since their approval to over $1.45 billion.
This trend stands in stark contrast to the performance of other major cryptocurrency ETFs. For instance, spot Bitcoin ETFs have experienced net outflows totaling $226 million this week, $2.26 billion this month, and $2.43 billion last month, resulting in a year-to-date loss of $3.3 billion in assets. Similarly, Ethereum ETFs have seen outflows surge to $198 million this week, with losses of $540 million last month and $1.2 billion for the year.
The continued inflows into XRP ETFs suggest investor optimism that the digital asset may rebound, particularly after experiencing a 40% price decrease year-to-date.
XRP Ledger Faces Significant Growth Hurdles
Despite the positive sentiment surrounding its ETFs, the XRP Ledger is encountering substantial growth challenges. Network activity has not seen the anticipated improvement, even after Ripple’s strategic acquisitions last year. Data reveals a consistent decline in the number of transactions on the network, with daily figures falling to 452,000, a level not seen since October of the previous year.
Furthermore, both the number of active addresses and the transaction burn rate have been on a downward trajectory this year. The XRP Ledger’s involvement in the decentralized finance (DeFi) sector has also diminished in recent months. Its total value locked (TVL) has fallen to $39 million, its lowest point since September 2024, a significant decrease from its peak of over $100 million.
This subdued growth, coupled with low transaction fees, has impacted the network’s revenue generation. Quarterly fees have plummeted to just $43,000, representing a multi-year low. This figure is a sharp decline from the peak of $1.4 million recorded in 2024.
Stablecoin Growth Offers a Solitary Positive Note
The sole positive development within the XRP ecosystem is the consistent growth of its stablecoin supply, which now exceeds $784 million. This expansion is largely attributed to the ongoing demand for Ripple USD (RLUSD).
Technical Analysis Points to Further Downside for XRP
Technical indicators also suggest that the XRP price may experience further declines in the short term. The token has broken below a critical support level of $1.2748, a price point that previously served as a low in February, April, and May of this year, and has also fallen below the lower boundary of a multi-month horizontal channel.
Currently, XRP is trading below both its 50-day and 100-day Exponential Moving Averages (EMAs). The Moving Average Convergence Divergence (MACD) lines remain below the zero line, and the Relative Strength Index (RSI) continues to trend downwards. These factors indicate that the path of least resistance for XRP is currently bearish, with the next significant price level to monitor being $1.00.
