XRP News Today: XRP ETF Inflows Surge to $1.25B as Token Grapples With Weak Altcoin Sentiment

XRP markets remain under pressure despite strong institutional demand, with the token trading near $1.84 as broader altcoin sentiment remains weak. However, ETF inflows have reached $1.25 billion in total assets under management, signaling growing confidence among asset managers and regulated investors. Analysts suggest XRP is likely to consolidate in a range before a potential breakout or breakdown emerges according to analysts.

Exchange balances for XRP continue to decline, with only about 1.5 billion tokens now available on centralized platforms, raising speculation about a potential supply shock in early 2026. This trend reflects sustained accumulation by long-term holders and ETF vehicles, which remove liquidity from open markets.

Institutional adoption has been a key driver, with Franklin Templeton's XRP ETF now holding 101.55 million tokens valued at $192.7 million. This represents a milestone in the fund's growth and reflects methodical inflows rather than speculative bursts according to reports.

Why the Market Remains Cautious

Despite the ETF inflows and supply-side tightening, XRP has struggled to break out of a prolonged downtrend. The token is down about 14% year-to-date and more than 17% over the past month, reflecting broader market weakness. Analysts attribute this to risk-averse behavior and high selling pressure from long-term holders.

Weak altcoin sentiment continues to offset positive developments, with XRP failing to generate strong upward momentum. Nansen analyst Jake Kennis noted that altcoins typically struggle until Bitcoin stabilizes or forms a clear bottom, suggesting XRP's path higher remains dependent on broader market conditions.

What Analysts Are Watching

Technical indicators point to a key decision zone for XRP. The token is trading within a triangle pattern, which could lead to a sharp price swing once a breakout occurs. Analysts are watching the $1.80 level as critical support, with a break below it potentially sending XRP toward $1.37 according to analysts. On the upside, a bullish reversal would require stronger volume and a breakout above current bearish signals as per market analysis.

On-chain data supports a potential supply squeeze by early 2026. ETFs and long-term holders have removed large amounts of XRP from exchanges, reducing available liquidity. This dynamic could amplify price pressure if demand accelerates according to market reports.

Risks to the Outlook

Market participants remain divided on XRP's near-term trajectory. While some see a path to $2.10–$2.20 if the token breaks key resistance levels, others warn that weak fundamentals and investor sentiment could prolong the consolidation phase according to analysts.

The recent $1.25 billion milestone in XRP ETF assets also carries risks. Although inflows have been consistent, overreliance on institutional flows could create volatility if market conditions shift. Additionally, the token's large supply of 100 billion tokens makes a $100 price target highly unlikely under current market conditions as research shows.

What This Means for Investors

Investors are advised to remain cautious as XRP navigates a critical inflection point. The token's performance will depend on regulatory clarity, macroeconomic trends, and broader adoption by institutions. The Clarity Act, set for a markup in early 2026, could provide a regulatory catalyst if it clarifies the legal status of digital assets.

For now, the focus remains on ETF inflows and exchange balances as leading indicators. Sustained demand from asset managers and a tightening supply environment may create favorable conditions for XRP in the long term. However, immediate price action is likely to remain volatile until key technical and macroeconomic levels are tested according to market analysis.