XRP's Institutional Momentum Builds While Spot Market Digests a Steep Correction

XRP drops 2% to $1.36 despite record ETF inflows of $110M; key support at $1.35–1.38, analysts eye $1.70.

The gap between XRP's institutional trajectory and its spot-market reality has rarely been wider. The token changed hands near $1.36–1.37 on Friday, down roughly 2–2.6% on the day, as a two-week pullback continued to test the patience of traders who had ridden a powerful summer rally.

That rally was substantial. XRP climbed from around $0.988 to a local peak near $1.698 — a gain of roughly 71.8% — before giving back about a fifth of those gains. The week's loss stands at roughly 10–11%, and the token has shed approximately 26% since the start of the year, a figure that masks the volatility of the intervening months.

Record ETF inflows tell a different story

The price weakness stands in stark contrast to what fund flows are showing. US spot XRP ETFs recorded net inflows of $110.49 million in the week through August 28, according to SosoValue — the strongest weekly figure since early December 2025 and the best of this year. Cumulative inflows since the products launched have reached nearly $1.66 billion, with net assets under management at $1.44 billion.

Bitwise, Canary Capital and Franklin Templeton together account for 93% of those inflows. August 26 alone saw an estimated $28 million enter the products in a single session.

The divergence is not unique to XRP. On August 28, US spot bitcoin ETFs posted net outflows of $201.9 million, snapping a nine-day inflow streak, while ether, Solana and XRP funds stayed in positive territory. The pattern suggests institutional accumulation is not currently sufficient to offset selling pressure at the trading level.

A key support zone comes into view

Chart watchers are now focused on a well-defined band between $1.35 and $1.38, where roughly 3.2 billion XRP changed hands — a level analysts regard as a meaningful defense line. Below that, the 50-day moving average sits at $1.14, about 19% beneath the current price, while the 200-day average at $1.27 leaves a 6.7% buffer.

Analyst Ali Martinez sees the support zone as robust and points to $1.70 as the next upside target, with resistance levels at $1.60, $1.68 and $1.86 before $2.19 comes into play. Celal Kucuker goes further, projecting targets from $2.50 to as high as $13 should the current downtrend break.

Supporting the cautiously optimistic read: exchange reserves have fallen from 2.8 billion to 2.6 billion XRP, a signal that holders are moving tokens into custody rather than preparing to sell. Open interest on futures markets has simultaneously declined from $1.4 billion to $1.2 billion, suggesting speculative pressure is easing.

Hawkish Fed comments and leveraged positioning add pressure

The correction has not occurred in a vacuum. Hawkish remarks from Fed official Kevin Warsh at the Jackson Hole economic symposium weighed on the broader crypto complex late last week. The impact was amplified by forced deleveraging: exchanges reported liquidations of leveraged futures positions exceeding $105 million within a single hour, the bulk of it in longs.

Yet positioning data tells a more nuanced story. Open interest on XRP futures at venues like the CME jumped nearly 40% within a week, while leveraged funds nearly doubled their net short position to roughly 115.7 million XRP. That combination — rising participation alongside growing bearish bets — points to genuine uncertainty among speculative traders even as the medium-term news flow remains constructive.

Ripple's Wall Street push accelerates

The institutional build-out continues on multiple fronts. Ripple Prime launched a delta-one desk for total-return swaps on US equities, indices and digital assets on Thursday, aimed at hedge funds and asset managers. The unit holds regulatory net capital exceeding $1 billion, supported by a $275 million bond placement in August and a $200 million credit facility from Neuberger Specialty Finance. XRP has served as collateral in the prime business since March.

The RLUSD stablecoin, issued on both the XRP Ledger and Ethereum, has also crossed the $2 billion mark in total supply, with 44% circulating on the XRP Ledger and 56% on Ethereum. Multiple eight-figure minting events occurred in recent days alone.

Adding to the pipeline: Evernorth, which received SEC approval of its S-4 registration form, plans to list on the Nasdaq under the ticker XRPN, subject to a shareholder vote on September 30. The company reports holding approximately 473 million XRP.

Supply mechanics and regulatory timing

A scheduled release of 1 billion XRP by Ripple, set for today, is a recurring monthly event that can introduce short-term supply pressure. Meanwhile, XRP Ledger validators are voting on native lending features, including single asset vaults — a proposal requiring more than 80% validator approval over two weeks, with support currently at just 34–37%.

The regulatory calendar remains a focal point. The US Senate's consideration of the CLARITY Act, seen as a potential framework for digital assets, resumes after September 14, with a vote scheduled for September 15. Until then, the interplay of Fed commentary, token unlocks and the fate of the $1.35–1.38 support zone is likely to determine XRP's near-term direction.