XRP Faces 13-Year Momentum Low Amid ETF Inflows and Regulatory Stalls

• XRP trades near $1.07, reflecting a 43% year-to-date decline and a 13-year low in monthly momentum.
• Grayscale XRP Trust disclosed $180 million in sales to meet redemptions, dropping holdings by over 50%.
• Inflows to spot ETFs reached $14.86 million last week, led by Bitwise and Franklin Templeton .
• Legislative progress remains stalled as the CLARITY Act is absent from the Senate schedule .

XRP is trading in a tight range between $1.06 and $1.08, marking a significant 43% decline year-to-date . Technical indicators highlight intense bearish pressure, with the 200-day Exponential Moving Average sloping lower near $1.397 . Crypto analyst Cryptollica noted that XRP’s monthly momentum has reached its weakest point in over 13 years .

This current correction is deeper than historical downturns seen in 2014, 2018, 2020, and 2022 . The asset is currently testing a long-term support level that has previously attracted buyers . Despite this price weakness, the asset continues to see steady interest from certain institutional channels .

Why Are ETF Flows Diverging From Price Performance?

Spot XRP ETFs recorded $14.86 million in net inflows during the past week . Bitwise led the activity with $10.15 million in inflows, bringing its cumulative total to $511 million . Franklin Templeton added $4.70 million, reaching a running total of $426 million .

This marks the fourth consecutive month of positive inflows, totaling $27.29 million in July . However, these inflows are significantly smaller compared to Bitcoin and Ethereum funds . Bitcoin and Ethereum saw $172 million and $365 million respectively in July .

Conversely, the Grayscale XRP Trust ETF disclosed a significant reduction in holdings . The fund sold over $180 million worth of XRP during the first half of 2026 . The fund’s XRP position decreased from 122.23 million tokens at the end of 2025 to 55.04 million by June 30 .

This reduction involved selling 103.41 million tokens, primarily to redeem investor assets and cover sponsor fees . While the trust created an additional 36.27 million XRP worth $66.58 million, outflows far exceeded these inflows . Consequently, the value of the fund's holdings declined from $223.36 million in December 2025 to $57.41 million by the end of June .

Grayscale reported a realized loss of $34.16 million on the sales for share redemptions . The fund also recorded an unrealized loss of $17.47 million on its investment portfolio . Additional realized losses of $39,000 were incurred to offset operational expenses .

Is Legislative Clarity Emerging for XRP?

Regulatory uncertainty persists as the CLARITY Act remains off the Senate floor schedule . The proposed legislation would shift oversight from the SEC to the CFTC . With the Senate expected to recess in early August, legislative progress is unlikely in the immediate term .

Supply dynamics also remain a factor for the asset . Ripple’s monthly escrow release has the potential to add 200 to 300 million new XRP to circulation . This periodic release adds a layer of supply-side pressure to the existing bearish technicals .

The reduction in holdings per share was driven by authorized participants withdrawing XRP to meet redemption requests . This selling pressure coincides with a broader market decline for XRP . The asset fell from $1.84 at the start of 2026 to $1.05 by June 30 .

This represents a drop of over 40% within the first half of the year . The combination of heavy institutional redemptions and stalled regulatory progress continues to weigh on the asset . Investors are closely watching whether the long-term support level will hold against these combined headwinds .