XRP struggled this week, losing nearly a quarter of its value from its year-to-date highs even as newly launched exchange-traded funds (ETFs) attracted strong inflows.
XRP slides despite ETF demand
On September 27, XRP was trading at $2.77, down from its all-time high of $3.65. The drop mirrors broader weakness across the crypto market, with Bitcoin and Ethereum also pulling back on the back of Federal Reserve uncertainty and a wave of leveraged liquidations.
Yet, even as the token fell, investor appetite for XRP-linked ETFs remained robust. The recently launched spot XRP ETF has already attracted over $71 million in inflows, according to data from ETF.com.
Most of that came in a single day Thursday when investors poured in $36 million. The fund now holds over $66 million in assets, a notable achievement for a smaller issuer charging a 0.75% expense ratio.
Other XRP products are also seeing growth. The Teucrium 2x XRP ETF (XXRP) has posted steady weekly inflows since launch, building its assets under management to $383 million. Analysts believe larger players like Franklin Templeton and Invesco could see even bigger demand, thanks to their lower fees. JPMorgan estimates these spot ETFs could attract over $8 billion in their first year.
Technicals point to possible rebound
Despite the recent drop, the XRP chart is flashing several bullish signals:
- Triple-bottom pattern: XRP has established strong support around $2.72, often a precursor to an upside breakout.
- Falling wedge formation: The token’s price action has narrowed into a bullish wedge, which also forms part of a cup-and-handle pattern another positive setup.
- Elliot Wave structure: XRP is currently in the second wave of its Elliot Wave cycle, which often precedes a significant rally.
If these patterns play out, XRP could mount a recovery toward its year-to-date high of $3.66.
Bottom line
XRP’s price may be down 25% from its highs, but institutional demand through ETFs shows growing confidence in the asset. With strong inflows and bullish technical structures forming, XRP could be poised for a rebound provided it can hold above its key support levels.
