XRP ETF Inflows and Rising Retail Demand Bolster Recovery Outlook

• XRP ETF inflows have surged to $1.25 billion since November 2025, signaling growing institutional and retail confidence.
• Regulatory developments, including Ripple's SEC settlement and the proposed Clarity Act, have improved legal certainty around XRP and other tokens.
• Technical analysis suggests XRP is trading near critical support and resistance levels, with mixed indicators pointing to potential for both bullish and bearish movements.

XRP has seen a modest rebound in recent days, supported by inflows into spot ETFs and reduced exchange-held supply. The cumulative inflow into XRP ETFs has reached $1.25 billion, with a single outflow recorded since their launch in November. This trend contrasts with outflows seen in Bitcoin and Ethereum ETFs, indicating a differentiated institutional appetite for XRP.

Regulatory clarity has played a pivotal role in this shift. Ripple's resolution of its SEC case in August 2025 removed a key legal uncertainty, enabling broader adoption via ETFs. Additionally, the proposed Clarity Act in the U.S. Senate aims to classify XRP alongside Bitcoin as a commodity, which could further enhance its institutional appeal.

Market technicals remain mixed. XRP is currently trading between its 50-day and 100-day EMAs, while futures Open Interest remains at $3.93 billion. A RSI reading of 57 suggests neutral to slightly bearish momentum, though a sustained move above $2.26 could signal a breakout toward $2.33 and beyond.

What Drives XRP ETF Inflows in 2026?

Institutional and retail investors are increasingly allocating capital to XRP ETFs, which have outperformed many other altcoins in 2026. This trend is attributed to a combination of regulatory clarity and structural supply tightness following significant reductions in exchange-held XRP balances.

Ripple's business expansion, including the acquisition of Ripple Prime and GTreasury, has enhanced institutional-grade custody and treasury services, making XRP more attractive to institutional investors. Meanwhile, the token's real-world utility through services like Ripple's On-Demand Liquidity (ODL) continues to provide a use case foundation.

What Technical Indicators Are Watched for XRP Price Movement?

Analysts are closely monitoring key resistance and support levels for XRP. The token has rebounded from a key demand zone around $1.77–$1.90 and is now testing the $2.24–$2.35 supply range. A clean push above $2.35 could open the path to $2.60–$2.75, while failure to hold above $2.00 may see a return to lower levels.

The RSI currently at 57 suggests that bulls have control, but the MACD warns of potential bearish crossover below $2.08 EMA. The Bollinger Bands analysis also supports a potential upward movement toward the upper band at $2.33.

What Risks Remain for XRP's Recovery?

Despite positive inflows and technical optimism, XRP faces risks including ongoing regulatory uncertainty and macroeconomic volatility. The Senate's proposed Clarity Act remains in draft form and could change before passing. Additionally, the derivatives market shows caution, with futures Open Interest declining from $4.55 billion to $3.93 billion.

Retail and institutional investors are advised to use dollar-cost averaging and hedging strategies to balance optimism with risk management. The token's performance is also closely tied to Bitcoin's strength and broader altcoin appetite, making it a high-risk, high-reward asset for many.