XRP sinks below $2 despite $1B in ETF inflows: How low can price go?

XRP has emerged as a leader in institutional inflows, with Spot XRP ETFs experiencing 19 consecutive days of inflows totaling nearly $1 billion, despite the cryptocurrency's price remaining stagnant around $2. This disconnect between strong demand and price performance raises questions about market dynamics.

XRP has transitioned from being viewed as a speculative cryptocurrency to a recognized digital asset in regulated markets, reflecting increased legal clarity and institutional interest. This shift is underscored by recent developments from the US Commodity Futures Trading Commission (CFTC) and growing demand for compliant blockchain solutions.

Bitcoin and Ether have shown a rebound in the latest ETF weekly recap, while Solana and XRP have extended their inflow streaks, indicating a positive shift in investor sentiment towards these cryptocurrencies. The report highlights a significant inflow of $224 million into Bitcoin ETFs, alongside renewed interest in Ether as ETF inflows resume, suggesting a recovery from previous market volatility.

Bitcoin's price remains below the $90,000 mark, struggling to regain higher levels as market bulls attempt to defend current demand zones. Following a significant correction, the price has entered a consolidation phase, which may appear stable but is accompanied by rising structural risks according to on-chain data from CryptoQuant and XWIN Research Japan.

CME Group has expanded its cryptocurrency derivatives offerings by launching spot-quoted futures for XRP and SOL, providing new trading options and enhancing market access for investors. This move marks a significant step in the company's efforts to broaden its crypto product range.

Ripple has emerged victorious in its legal battle with the US Securities and Exchange Commission (SEC), with XRP being classified as a non-security. This resolution has shifted the focus from regulatory concerns to Ripple's broader achievements in the cryptocurrency landscape.

XRP has remained stagnant around the $2.00 mark despite significant institutional developments, including Ripple's $300 million venture fund expansion into South Korea and nearly $1 billion in spot ETF inflows. This lack of price movement suggests a disconnect between positive news and market behavior, as XRP's price trends downward on the daily chart.

The supply of XRP on cryptocurrency exchanges has been rapidly decreasing, indicating a potential supply shock as the price of the token continues to decline amid ongoing volatility. This trend suggests that many investors are moving their holdings off exchanges during this bearish phase.