XRP price slips below $1.50 – Can ETF demand fuel a recovery?
Key Summary
XRP's price has slipped below $1.50 due to the general market weakness, but a key divergence is taking shape within the asset's market structure. Evernorth's SPAC merger with Armada II has brought approximately 473 million XRP into the public markets, and XRP ETFs are seeing net inflows despite BTC and ETH ETFs recording outflows. This divergence suggests that XRP's recent performance may be more than a random capital rotation, and the asset could lead the next leg of capital rotation if sentiment turns bullish.
XRP Price Slips Below $1.50: Can ETF Demand Fuel a Recovery?
Market Analysis
XRP's price has slipped below $1.5, following the general market weakness. However, this is in line with the broader risk-off move that saw the total crypto market value drop more than 4%, pushing high-caps below crucial support levels. But what happens when the market reverts to risk-on? Given XRP's current positioning, it wouldn't be surprising to see it lead the charge in the next wave of risk-on flows.
XRP ETF Divergence
On the macro level, XRP's current market structure is showing a key divergence. XRP ETFs are continuing to see net inflows, despite BTC and ETH ETFs recording outflows. This is particularly interesting, as data from SoSoValue shows XRP ETFs clocking $67 million in daily trading volume. The key takeaway is that Franklin Templeton is beginning to close the gap with Bitwise, in terms of daily volume. This points to growing activity across XRP ETF products.
Institutional Interest
Evernorth's SPAC merger with Armada II has brought approximately 473 million XRP into the public markets. This is where the divergence gets interesting. The merger enables Evernorth to enter the public markets and provide investors with an alternate avenue for gaining exposure to Ripple [XRP]. According to AMBCrypto, this is where the divergence gets interesting. Data from SoSoValue shows XRP ETFs continuing to see net inflows, despite BTC and ETH ETFs recording outflows. XRP ETFs also clocked $67 million in daily trading volume. The key takeaway is that Franklin Templeton is beginning to close the gap with Bitwise, in terms of daily volume. This points to growing activity across XRP ETF products.
Fundamental Analysis
On the fundamental side, the XRP Ledger is also seeing progress. The latest upgrade introduces delegated key controls for banks, stablecoin issuers, and tokenized funds. In essence, businesses can grant permission to a particular account to approve customers on separate accounts while keeping their primary wallet keys offline. Such a feature might make the XRPL much more attractive to institutional players that want to exercise greater control and security over digital assets. Additionally, XRPL's emerging agentic economy is another indicator of increased activity on the ledger. As the post below shows, it has already achieved a record 13 million with 166 x402 merchants. Agentic payments are currently representing approximately 25% of its ledger activity. If this trend continues, it is likely to cross the 100 million milestone in roughly 12 months.
Conclusion
Together, these signals suggest that XRP's recent divergence may be more than a random capital rotation. With Evernorth's merger, upcoming XRPN trading and increased XRPL activity, XRP's ETF inflows reflect a more 'strategic' capital rotation, even as the broader market faces weakness. Should this development persist and the market turn risk-on, XRP could be well-positioned to lead the next leg of capital rotation. XRP ETFs are seeing inflows despite BTC and ETH ETF outflows, while Evernorth's merger adds to growing institutional interest. With XRPL activity rising and new upgrades rolling out, XRP could lead the next market recovery if sentiment turns bullish.