XRP News Today: XRP ETFs Attract $643M Inflows, But Price Struggles to Break $2.60 Threshold

XRP's price trajectory has entered a critical juncture as the token approaches a pivotal monthly close, with institutional demand for XRP exchange-traded funds (ETFs) surging despite persistent market volatility. Data from SoSoValue reveals that XRP ETFs recorded $643.92 million in net inflows during their debut month, capturing 0.50% of XRP's market capitalization. This momentum has been driven by major issuers including Grayscale, Franklin Templeton, Bitwise, and Canary, whose collective inflows have pushed ETF-held XRP above 0.5% of the total circulating supply, signaling early institutional interest. The inflows have coincided with a broader shift in institutional behavior, as highlighted by Xaif on X, who noted daily net inflows of $164 million and total assets exceeding $628 million, underscoring rapid adoption.

However, XRP's price action has remained mixed, with the token trading near $2.20 despite historic ETF inflows. A recent $164 million opening-day launch for Franklin Templeton's XRPZ and Grayscale's GXRP failed to translate into sustained price strength, as derivatives markets recorded a 1.7 billion drop in open interest on Binance. Whale activity further complicated the outlook, with massive offloads of 180 million XRP tokens reported, exacerbating short-term selling pressure. Analysts caution that while ETF inflows have reduced liquid supply and increased market pressure, the token's ability to hold key technical levels will determine its near-term direction.

Market observers are closely monitoring XRP's performance against critical thresholds. A monthly close above $2.60 would place the token above the 0.5 Fibonacci retracement level, signaling bullish momentum, while a break above $3.40 could indicate a structural breakout. Conversely, a close below the 21-month EMA poses risks to long-term support, potentially undermining confidence. EGRAG Crypto emphasized the importance of these levels, noting that institutional inflows must counterbalance recent whale distributions and derivatives leverage breakdowns to sustain a bullish case.

The upcoming launch of 21Shares' XRP ETF adds another layer of uncertainty. With $666 million in institutional investments already flowing into the asset, the new product could inject liquidity into a market still grappling with volatility. However, traders remain wary of conflicting signals: while ETF inflows suggest growing institutional confidence, technical indicators such as the RSI and MACD remain neutral, hinting at a potential consolidation phase.

As XRP approaches its monthly close, the interplay between institutional demand and market fundamentals will shape its trajectory. Sustained inflows and a successful ETF rollout could bolster the token's position in regulated markets, but any breakdown in critical support levels may trigger a reevaluation of its broader adoption potential.