XRP ETF demand builds, so why does price action remain muted?

XRP just recorded a $10.63 million Spot ETF inflow in one session, pushing total ETF-held assets to $1.56 billion and reinforcing institutional demand.

This steady allocation suggests long-term positioning rather than short-term speculation. 

ETF inflows arriving during a corrective phase indicate confidence despite muted price action. Institutions appear comfortable accumulating while volatility stays compressed. 

However, price has not yet responded decisively. That gap between demand and price often emerges before directional expansion. 

Meanwhile, the consistency of ETF buying matters more than the single-day figure itself. Repeated inflows gradually absorb available supply. As a result, institutional presence continues to grow beneath the surface. 

XRP remains trapped inside a descending channel

XRP continued trading within a clearly defined descending channel on the daily chart, keeping the broader structure corrective.

Price recently bounced from the lower channel boundary, showing that buyers still defended that zone. 

However, sellers remained active near the upper channel area, preventing trend resolution. Until price reclaims that region, the downside structure will persist. 

Key demand sat around the $2.05–$2.10 region, while resistance remained layered between $2.35 and $2.65. 

Meanwhile, the RSI rebounded toward the mid-range, signaling stabilizing momentum after extended weakness. However, it has not entered overbought territory, suggesting improving conditions, not a confirmed reversal. 

Therefore, momentum supports consolidation rather than breakout. Structure still dictates direction, and RSI must push decisively higher to validate any channel escape.

Exchange outflows hint at tightening liquid supply

Spot exchange data showed net outflows of $7.41 million, signaling XRP continues to leave centralized venues. 

This movement typically reflects reduced intent to sell immediately. Instead, this time, holders appear to shift assets into custody. As supply on exchanges declines, available liquidity tightens. 

This process often supports price stability during corrective phases. Importantly, these outflows align with ETF accumulation rather than contradict it. Both flows suggest accumulation across different market segments. 

However, reduced exchange balances alone do not trigger rallies. Price still needs structural confirmation. Even so, persistent outflows reduce downside acceleration risk. Sellers face a less readily available supply. 

NVT ratio warns of stretched valuation

XRP’s Network Value to Transactions ratio has increased by 4.46%, pushing the metric to 177.25. This rise indicates market value is expanding faster than on-chain transaction activity. 

Such conditions often appear during consolidation rather than breakout phases. Network usage has not yet accelerated to support higher valuation. 

As a result, upside momentum may face friction. However, NVT does not signal immediate reversals. Instead, it highlights where price may pause until activity improves. 

Therefore, elevated NVT reinforces the idea of range-bound behavior. XRP may require stronger on-chain participation before sustaining any structural breakout.

Funding Rates cool as leverage resets

Funding Rates have declined by 43.13%, signaling a significant reduction in leveraged positioning. 

Traders now show less appetite for aggressive directional bets. This shift lowers the liquidation risk across the market. Consequently, volatility compression becomes more likely. 

Importantly, funding has not turned deeply negative. Short conviction remained limited. Instead, leverage appeared to reset rather than flip bearish.

Historically, such conditions favor spot-driven moves over derivatives-led spikes. 

As leverage pressure fades, price action stabilizes. Therefore, funding data supports balance and consolidation, not trend acceleration or breakdown.

Conclusively, XRP showed clear signs of accumulation through ETF inflows and exchange outflows, yet price remained constrained by structure. 

Momentum stabilized, leverage cooled, and supply tightened. However, the descending channel still controlled direction. Until XRP breaks that structure, accumulation alone cannot drive a sustained rally.

Final Thoughts

• Accumulation continues quietly, but XRP still needs structural confirmation to unlock upside. 
• Until the descending channel breaks, price strength remains controlled and corrective.