XRP News Today: XRP ETF Inflows Clash with Derivatives Outflows as Market Fragility Exposed

XRP experienced a dramatic price swing and unusual $0 liquidations in derivatives markets amid heightened volatility, as institutional demand for the token collided with aggressive selling pressures. The cryptocurrency briefly dropped 30% overnight, triggering over $1.14 million in liquidations, predominantly long positions, according to CoinGlass data. This sharp decline occurred despite $164 million in ETF inflows following the launch of two XRP exchange-traded funds on NYSE Arca by Franklin Templeton and Grayscale according to market reports. The disconnection between institutional buying and price action highlighted fragility in the market structure, as whale activity sold 200 million XRP post-ETF launch, exacerbating downward momentum according to technical analysis.

The price recovery to $2.19 from a low of $2.02 temporarily stabilized the token, with technical indicators suggesting buyers intervened near the $2.00 support level. However, the broader context of XRP's performance remains bearish, as it trades 40% below its annual peak and below key moving averages. The token's technical chart shows a descending channel breach and a rising wedge pattern, with analysts noting prolonged bearish sentiment reflected in the CryptoQuant Bull Score Index at 20/100. Meanwhile, Ripple's stablecoin RLUSD saw a 56% surge in 30-day transaction volume to $3.5 billion, indicating growing utility for the XRP ecosystem according to market data.

Market dynamics were further complicated by uneven liquidity distribution across exchanges. MEXC and Binance, handling over $1.7 billion in XRP spot volume each, became focal points for cascading liquidations according to trading analysis. Binance's long-to-short ratio of 2.55 to 1 underscored the vulnerability of leveraged long positions, which were disproportionately wiped out during the selloff. This imbalance, combined with a 90% renewable energy-powered data center expansion by Hive Digital Technologies-part of a broader industry shift toward AI infrastructure-highlighted diverging narratives in the crypto sector.

XRP's recent price behavior and technical formations suggest a market in flux. The visual representation of this price action underscores the intense volatility and conflicting forces at play in the market.

Looking ahead, XRP's trajectory depends on stabilizing volume flows and resolving the tension between ETF inflows and derivatives outflows. While Franklin Templeton and Grayscale's ETFs have drawn $622 million in cumulative assets, representing 0.50% of XRP's market cap, this pales in comparison to Bitcoin and Ethereum's 6.54% and 5.5% ETF allocations, respectively. Analysts remain divided: some see a potential rebound toward $2.60 as buyers accumulate near oversold RSI levels according to technical analysis, while others warn of a retest of the $2.00 zone if derivatives outflows persist according to market reports.

This data visualization will help clarify the current technical landscape for XRP, showing how the RSI has moved into oversold territory and whether it aligns with a potential price reversal.

As the debate between bullish and bearish perspectives continues, investors are also closely watching XRP's ability to maintain its recent gains.