XRP News Today: Institutional Demand Fuels XRP ETF Surge to $1.25B, but Price Pressures Persist

XRP-based exchange-traded funds have hit a significant milestone with net assets crossing the $1.25 billion threshold. The surge in institutional demand was driven by recent inflows of $8.19 million. Despite the strong ETF activity, the price of XRP remains subdued, fluctuating within a tight range as traders continue to sell into rallies.

The steady flow of capital into XRP ETFs reflects a growing preference among institutional investors for structured products. These vehicles provide exposure to the asset without the complexities of direct custody. As a result, longer-term demand for XRP has remained intact, even as short-term price volatility persists.

Market participants are closely watching key technical levels, particularly the $1.90–$1.91 resistance area where selling pressure has been consistent. Volume has surged during recent trading sessions, indicating active offers at these levels. Meanwhile, support near $1.86 has held firm, preventing further downside in the short term.

Why the Standoff Happened

The recent price action for XRP has been characterized by a tug-of-war between ETF-driven demand and short-term traders. Institutional investors are adding to their positions through ETFs, yet retail traders are taking profit on rallies, keeping the price range-bound. This dynamic has created a standoff where neither buyers nor sellers can establish a clear advantage.

XRP's liquidity across major exchanges has helped sustain institutional interest. Unlike assets with less depth, XRP provides the necessary scale for large investors to build positions without significantly impacting the price. This has made it an attractive option for asset managers seeking diversified exposure to digital assets.

The pattern of selling at key resistance levels suggests that large holders are using ETF demand as a cover to distribute tokens. This strategy allows them to offload positions gradually, avoiding sharp price corrections. The steady inflows into ETFs may therefore mask an underlying supply overhang.

What This Means for Investors

For institutional investors, the recent ETF inflows reinforce XRP's position as a viable addition to diversified crypto portfolios. Many view the asset as a strategic play on cross-border payment infrastructure, rather than a speculative trade. This long-term focus helps insulate the market from short-term volatility.

Retail investors, however, face a more uncertain outlook. The absence of a sustained breakout has led to growing frustration among traders who expected an ETF-driven rally. While the $1.25 billion net asset milestone is a positive sign, it has not translated into bullish price momentum for the broader market.

Technical analysts are closely watching whether XRP can break out of its current $1.85–$1.91 range. A sustained move above $1.90 could trigger short-covering and push the price toward $1.95–$2.00. Conversely, a breakdown below $1.86 could test support at $1.77–$1.80, where historical demand has been strong.

Risks to the Outlook

Despite the strong ETF inflows, XRP remains vulnerable to broader macroeconomic pressures. Persistent U.S. inflation concerns and uncertainty around Federal Reserve policy have dampened risk appetite across asset classes. This environment limits the upside potential for XRP unless macro conditions shift significantly.

Another key risk is the possibility of continued whale selling. Recent data shows large holders actively transferring tokens to exchanges, often ahead of price declines. While not indicative of a massive dump, the pattern suggests ongoing supply pressure that could keep the price range-bound.

Investors are also keeping a close eye on Bitcoin's performance. A sharp decline in the leading cryptocurrency could spill over into XRP, given the strong correlation between major crypto assets. The broader risk-off environment means that even positive ETF news could be insufficient to drive a sustained rally.