The cryptocurrency market is weakening again at the start of the new trading week. Bitcoin, the first and most well-known cryptocurrency, fell to a local low below $63,000. Most other cryptocurrencies also dropped in value. Ripple’s cross-border token, XRP, moved lower as well and tracked the broad market drop.
A big reason for XRP’s move is seen in the wider crypto market. In about 36 hours, more than $150 billion of value left the total market. This large loss is widely noted as a major factor behind XRP’s about 4.5% drop to around $1.33. But some traders think there could be another important factor behind XRP’s slide.
What’s happening with XRP ETFs?
To understand one possible factor, it helps to know what an ETF is. An ETF, or exchange-traded fund, is a kind of investment fund you can buy or sell on a stock exchange. ETFs own assets like stocks, bonds, or currencies, and they try to track the performance of a group of assets or an index. For XRP, there are spot Ripple ETFs in the United States. The word spot means the ETF owns actual XRP tokens, not futures contracts or bets on future prices.
Data from a source called SoSoValue shows something interesting about these XRP ETFs. Investors who want to own XRP by buying these spot XRP ETFs have become much less active recently. In half of the trading days last week, there were no reportable net inflows. The trend continued on February 23. In the last five trading days, three days showed a clear “$0.00” next to the daily inflow figure, meaning no money moved into the ETF on those days. Because of this, the total inflows since such ETFs started in mid-November have stayed flat at about $1.23 billion in all.
That is very different from the early days of these XRP ETFs. In their first weeks, they moved past $1 billion of inflows in exactly one month. This sudden pause in inflows helps explain another part of the XRP story today: investor interest in XRP through these ETFs has cooled at a time when the broader market has been volatile.
How XRP is performing right now
As noted earlier, XRP has fallen more than 4.5% in the last 24 hours. Over the past week, it is down about 8%. Over the last month, XRP has lost roughly 30% of its value. With the price dipping, XRP has been trying to stay above the $1.30 level. Some analysts have offered explanations for these moves.
One prominent analyst, CryptoWZRD, said that XRP closed yesterday with a bearish mood overall. But they also pointed to another signal: the XRP/BTC trading pair, which compares XRP’s price to Bitcoin’s price, showed a bullish pattern. In simple terms, XRP may be gaining some strength when compared to Bitcoin, even while it drops against the dollar. If XRP can rise against Bitcoin, the analyst suggested XRP could become more bullish overall.
Another analyst, Merlijn The Trader (an active market watcher), noted that XRP was “holding structure while alts bleed.” In plain language, this means XRP retained a basic price structure even as many other altcoins fell more. He emphasized a key support level at about $1.36, which is a price area where buyers have tended to step in. However, the price has since moved below that level too in the current downtrend.
Merlijn also reminded readers that the big picture for XRP is different from many other altcoins right now. He argued that XRP is not behaving like a pure, speculative coin. Instead, he sees signs that XRP is acting more like an infrastructure token, meaning it is tied to real-world uses and systems. He highlighted ongoing activities such as payments, tokenization (the process of turning real-world assets into digital tokens), and on-chain settlement rails (the technology that helps complete transactions on the blockchain). In short, XRP is being supported by ideas of real use rather than only by hype or trading fever.
When traders talk about the current price level, they often reference the idea that XRP is being supported by real utility narratives. In practice, this means people are watching for concrete things XRP can do in the real world—like making fast cross-border payments and helping digital assets move on a secure network. The hope among some investors is that these real-world uses will eventually help XRP hold up better than many other assets during market sell-offs.
What is XRP and why does it matter?
To understand the XRP story, it helps to know a few basics. XRP is a token used in a network called the XRP Ledger. This network is designed to move money and value quickly and cheaply across borders. It is part of the family of assets created by a company called Ripple Labs. People sometimes refer to the whole system as Ripple, but the token itself is usually called XRP.
In the broader picture, XRP sits inside a group of technologies known as cryptocurrency, which are digital or virtual forms of money secured by cryptography. Cryptocurrencies work on a decentralized computer network and do not have a single central issuer.
- Payments — XRP is designed to help move money across borders fast. This can mean lower costs and quicker transfers for banks and financial institutions.
- Tokenization — The idea of turning real-world things (like a building, a car, or a contract) into digital tokens that can be traded on a blockchain. This can make ownership easier to prove and transfer.
- On-chain settlement — A way to settle (finish) a transaction directly on the blockchain, reducing the time between sending and receiving funds.
- Utility narratives — Real uses or benefits that people can point to, beyond price moves, to justify a token’s value.
These kinds of ideas have attracted investors who want to hold XRP not just for quick profits, but because they believe the technology can be useful in the real world. That belief can support the price differently from other coins whose main story is trading momentum alone.
What to watch next
For XRP and XRP ETFs, several things matter going forward. First, the price level around $1.30 is a key area. If the price can stay above this level or begin to recover, some traders might see it as a sign that XRP could move higher in the coming days. On the other hand, if the price continues to fall below $1.30, more traders may worry that the asset could slide further before finding new buyers.
Second, ETF inflows are an important part of the story. If more investors start buying XRP through spot XRP ETFs, that could provide additional support for the price by increasing demand. If inflows stay flat or decline, the ETF path may not be a strong driver of price moves in the near term.
Third, the broader market mood matters. When the entire crypto market weakens, even assets with strong ideas can fall. Conversely, a broader rebound could lift XRP as traders gain more confidence in the technology and in long-term use cases.
Finally, developments around the XRP ecosystem itself, such as new payments partnerships, improvements to the XRP Ledger, or regulatory news, can change how investors view XRP. Any headlines about real-world adoption or new services using XRP could tilt the balance toward a more constructive price action.
Simple recap for beginners
Here is a straightforward summary in plain language:
- The overall crypto market is down, and so is XRP, dipping below $1.35 at times.
- US spot XRP ETFs have had less buying activity recently. A slower inflow of money means less support from these investment products for XRP’s price.
- Analysts see mixed signals. One sees possible gains against Bitcoin if XRP strengthens in that market, while another notes XRP is holding up better than many other coins and is tied to real-use ideas like payments and on-chain technology.
- Key support levels, especially around $1.36 (and now around $1.30), are important to watch. The story could change if XRP performance improves or declines beyond these points.
Glossary of terms used in this article
The following short explanations use simple language and include links to Wikipedia so you can learn more. If a term is new to you, each link will take you to a longer definition with more details.
- XRP Ledger — The XRP Ledger (XRPL), also called the Ripple Protocol, is a cryptocurrency platform launched in 2012 by Ripple Labs. The XRPL uses the native cryptocurrency called XRP and can support other kinds of value like tokens or even other units such as miles or minutes. Learn more
- Bitcoin — Bitcoin is the first decentralized cryptocurrency. It was invented in 2008 by the person or group using the name Satoshi Nakamoto. It uses a peer-to-peer network and a blockchain to record transactions. Learn more
- Exchange-traded fund — An exchange-traded fund (ETF) is a type of investment fund bought and sold on stock exchanges. ETFs own assets such as stocks, bonds, currencies, or commodities and aim to track the performance of an index or basket of assets. Learn more
- Blockchain — A blockchain is a distributed ledger made of growing lists of records called blocks. These blocks are linked together securely using cryptographic hashes. It underpins many cryptocurrencies by recording transactions in a way that is hard to change. Learn more
- Cryptocurrency — A cryptocurrency is a digital or virtual currency that works on a decentralized computer network. It uses cryptography to secure transactions and control new units. It does not have a central issuing authority. Learn more
Source: The article on CryptoPotato about XRP ETFs and price action is used as the basis for this explanation. The numbers and quotes reflect that report’s details and are provided here to help readers understand what is happening with XRP and its investment products.
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