XRP ETF Inflows Stall Amid 71% Price Drop as Bulls Defend $1.00 Support

• US-listed XRP spot ETFs have recorded $1.5 billion in cumulative net inflows, yet total net assets have declined to $988.7 million due to significant valuation losses from the token's price drop.
• Monthly creation activity has cooled sharply, contracting over 90% from May to July, with Bitwise, Canary Capital, and Franklin Templeton accounting for the majority of lifetime inflows.
• XRP is trading around $1.08, with derivatives data showing mixed signals as retail bullishness contrasts with institutional caution on major exchanges.
• August historically presents weak momentum for XRP, with analysts expecting the token to trade between $1.00 and $1.18 as key legislative catalysts remain delayed .

XRP is trading near $1.07, marking a severe contraction from its July 2025 peak of $3.66 . The token has lost more than 40% of its value year-to-date and approximately 71% from its all-time high . This downward trajectory has created a challenging market structure where price action remains range-bound and heavily influenced by technical support levels .

Despite the price decline, US-listed XRP spot ETFs have reached a milestone of $1.5 billion in cumulative net inflows . However, the category's total net assets stand at only $988.7 million . This $511 million gap reflects valuation losses rather than investor redemptions, as fund holdings have continued to increase even as the token price declined .

The top three issuers—Bitwise with $500 million, Canary Capital with $467 million, and Franklin Templeton with $422.4 million—account for approximately 93% of lifetime creations . Collectively, these funds hold about 978.9 million XRP, representing less than 1% of the 100 billion maximum supply .

Monthly creation activity has cooled significantly following an early surge . Net inflows slowed from $131 million in May to $59 million in June, and further to approximately $12.3 million in July . Six trading sessions in July showed no net creations, with the largest single-day inflow being just $584,710 into a Franklin Templeton product .

Derivatives data presents a mixed picture for XRP traders . Futures volume has dropped 18.74% to $2.11 billion, while open interest remains stable at $2.45 billion . Long-short account ratios lean bullish on Binance and OKX, suggesting retail traders are betting on price rises .

However, larger market participants show greater caution . Top traders on Binance have a lower position-size ratio of 1.60, indicating institutional players are more defensive compared to retail accounts . Liquidation data shows long positions took the bigger hit in recent volatility, highlighting the fragility of the current bullish positioning .

What Technical Levels Define XRP's Current Range?

Technical analysis indicates XRP is trading below immediate supply . Resistance levels are identified at $1.0969 and $1.1248 . A daily close above $1.1248 is required to improve the market structure, while a loss of support at $1.0708 would expose lower levels .

Historical data indicates that August is typically the flattest month for XRP . The token averages a return of just 0.43% during this month and has closed the month lower for four straight years . Last August alone, the price dropped by 8% .

Current market conditions offer limited immediate catalysts to drive significant price movement . Key events such as the CLARITY Act vote and the Federal Reserve rate decision have been pushed to September . Consequently, weekly momentum has dropped to levels last seen at the 2022 bottom near $0.29 .

The $1.00 support level remains critical for bulls . Analysts expect XRP to spend August trading between $1.00 and $1.18, likely finishing near $1.10 . Bigger moves and clearer directional signals are expected to emerge in September when the delayed calendar events take place .

How Are Institutional Players Responding to XRP's Stagnation?

Institutional activity presents conflicting signals for the asset . Grayscale CEO Peter Mintz recently sold 2,611 shares of the GXRP ETF worth approximately $53,394 . This marks his first sale from the 2.84 million shares originally acquired in October 2024 .

The sale coincides with slowing ETF inflows and a year-to-date decline of over 50% for the fund . Despite this, on-chain adoption metrics are growing . The XRP Ledger crossed 8 million non-empty wallets, while holder counts continue to climb according to Santiment data .

Future demand drivers are closely tied to regulatory developments . Base-case modeling suggests cumulative inflows may reach only $1.55 billion by the fourth quarter . A legislative breakthrough, such as the CLARITY Act providing a statutory commodity framework for XRP, could lift monthly creations above $100 million .

However, Senate action on this legislation was delayed in late July . Supporters need additional Democratic votes before the August 7 recess, making the regulatory path a central variable for future XRP ETF demand . Without such catalysts, inflows may stagnate near $1.55 billion by the fourth quarter .

Network activity persists despite flat prices . Ripple is expanding its stablecoin RLUSD, which operates on both Ethereum and the XRP Ledger . Recent supply movements indicate treasury-style rebalancing rather than simple issuance, with liquidity being redistributed to venues with stronger exchange demand .