XRP Price Faces Bearish Pressure as Bears Target $1.00 Support Amid ETF Inflows

• XRP is trading at $1.06, extending a correction from July highs around $1.18 as the token remains within a broader bearish trend.
• Retail participation is cooling significantly, with perpetual futures open interest fading to 2.23 billion XRP, down from 2.37 billion in early July.
• Despite weak retail sentiment, institutional demand is providing a counterbalance through sustained XRP spot ETF inflows of $14.86 million last week.
• Market sentiment is further complicated by a $89 million loss from a Coldcard hardware wallet exploit, adding custody-related uncertainty to price action.
• The Crypto Fear & Greed Index is currently sitting at 28, reflecting a broader lethargy in risk asset appetite across the digital asset market.

XRP is currently trading at $1.06, extending a correction from July highs around $1.18 as the token remains within a broader bearish trend. The technical outlook is deteriorating, pressured by declining retail participation and a broader lethargy in risk asset appetite. The Crypto Fear & Greed Index is currently sitting at 28, reflecting a broader lethargy in risk asset appetite across the digital asset market. If sentiment worsens, XRP risks an extended sell-off below the critical $1.00 support level.

Perpetual futures open interest has faded to 2.23 billion XRP, down from 2.37 billion in early July. This decline signals reduced investor appetite among retail traders who previously drove much of the short-term volume. The fading open interest underscores a structural shift in market dynamics, where speculative retail leverage is being unwound. Traders are increasingly cautious, leading to a consolidation phase that tests the resilience of key support levels.

How Are Institutional ETF Flows Supporting XRP?

Conversely, institutional demand provides a counterbalance to the retail sell-off. XRP spot Exchange-Traded Funds (ETFs) attracted $14.86 million in inflows last week, up from $8.15 million the previous week. This sustained institutional risk exposure could provide momentum for a short-to-medium-term recovery if institutions continue to increase their risk appetite.

Cumulative inflows into XRP spot ETFs have now reached $1.51 billion, demonstrating long-term institutional conviction in the asset. Net assets remain stable at $989 million, indicating that while inflows are positive, there is also some profit-taking or rebalancing occurring. The divergence between retail outflows and institutional inflows highlights a changing ownership structure for the token.

What Security Risks Are Impacting the Market?

The crypto market is reacting to an attack on Coldcard hardware wallets, where a dormant firmware flaw exploited since 2021 was used to drain approximately 1,367 BTC. The stolen assets are valued at roughly $89 million, marking one of the most significant custody-related losses in recent history. Researchers warn that all vulnerable single-signature wallets remain at risk, adding a layer of uncertainty to the market environment.

This security event adds to the downside risks facing XRP and other digital assets as investors reassess custody solutions. The exploit highlights the persistent vulnerabilities in hardware wallet firmware, even for devices considered secure for years. Investors are likely to monitor the broader implications for hardware wallet manufacturers and the general security standards of the industry.

Why Is Market Sentiment So Weak?

Market sentiment is currently in 'Fear' territory, with the Crypto Fear & Greed Index at 28. This low reading reflects the combined impact of retail selling, technical deterioration, and broader macroeconomic caution. The lack of strong retail participation has left the market more dependent on institutional flows for price stability.

The broader lethargy in risk asset appetite is evident across multiple cryptocurrencies, not just XRP. Investors are waiting for clearer signals of a trend reversal before re-entering the market in significant numbers. Until retail sentiment improves, the market may continue to trade in a narrow range with occasional volatility spikes.

What Are the Key Levels to Watch?

The critical $1.00 support level is a key psychological and technical barrier for XRP. A break below this level could trigger further selling and extend the correction to lower supports. Conversely, a sustained move above $1.18 would signal a potential reversal of the bearish trend.

Traders are closely monitoring ETF inflows for signs of renewed institutional interest. Consistent weekly inflows above $10 million could provide the necessary buying pressure to stabilize the price. The interplay between institutional demand and retail caution will likely dictate XRP's price action in the near term.