Ripple ETF Demand Drops After Strong Start
Three months after they came out, XRP ETFs have seen a big drop in demand. Early excitement faded even though a few big issuers had a lot of volume at the start. Investors are not very active in recent trading sessions across the country.
Recently, flows stopped moving, and there were no reportable activities for several days. Products showed repeated “$0.00” entries, which meant there was no daily participation. These changes show that confidence is falling in many different institutions.
Early Inflows Surged But Momentum Has Nearly Disappeared
Canary Capital’s XRPC set records for the amount of trading that happened on its first day. A lot of other products quickly pushed combined inflows over $1 billion. But after those strong early periods, there was never any sustained momentum.
In the past few weeks, XRP-related funds have seen repeated net outflows. Several sessions in a row saw a lot of investors pulling out of all platforms. Net cumulative inflows are stuck at about $1.23 billion, and participation is not growing.
Multiple Trading Days Showed Zero Activity Across Platforms
The trading data from February showed that there were two sessions with no ETF flows at all. Earlier weeks already had isolated “$0.00” recordings that showed interest was fading. Last week, these trends got stronger, which suggests that the structure is cooling down.
On other trading days, there were only small inflows or outflows. Market closures made it even harder to see trading volumes. Half of the week saw very little ETF activity from investors as a result.
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XRP Price Declines Despite Brief Weekend Surge To New Highs
XRP rose unexpectedly above $1.65 during last weekend’s attempt to rally. The move suggested that there might still be strength, even though ETF participation trends were fading. But the rally didn’t keep up its momentum in the following sessions.
Prices fell quickly and came back up to around $1.40 in the middle of the week. XRP briefly dropped below that level, but then it rose a little bit after that. Overall, weekly performance is still down more than 11%.
Short Sellers Dominate Market As Bearish Pressure Intensifies
According to analyst data, short traders still have a lot of power in the markets. High short interest has been putting constant downward pressure on the market lately. This situation makes it harder to make real attempts to raise prices.
A lot of ETF investors stayed out of the market, which made it more fragile. Weak demand signals made people less confident across a wide range of institutional channels. The combined forces keep pushing prices down during all trading cycles.
Undervaluation Metrics Suggest Potential Rebound Opportunity
Santiment said that XRP’s 30-day MVRV shows that it is slightly undervalued right now. Metrics show that holders have lost a lot more money than they expected. In the past, similar patterns have happened before major recovery periods in earlier cycles.
Realized losses were at levels last seen during big rebounds in 2022. That event came before a big rally that made gains of more than 114%. Analysts think that similar conditions could theoretically lead to future appreciation.
Market Awaits Confirmation Before Predicting Broader Recovery
Even though there are signs that the market is undervalued, traders are still being careful about what happens in the near future. The chances of recovery are dim because of ongoing selling pressure and low ETF activity. For a trend to change, support must stay above important levels.
People who watch the market are still keeping an eye on flows to see if institutions will start to participate again. A clear improvement could mean that more investors are becoming more confident. Until then, XRP is likely to be more vulnerable to periods of high volatility.
