XRP has pulled back to around $1.42, showing a clear cooldown after a recent rapid rally. This decline is primarily driven by deleveraging in the derivatives market, rather than a broad exit of spot funds. Meanwhile, spot XRP ETFs continue to experience net inflows, creating a divergence in short-term price action.
ETF daily inflows are heating up
On August 26, the XRP spot ETF recorded a net inflow of $28.14 million, marking its strongest single-day performance in over seven months. The total accumulated inflow into related funds remains close to $1.62 billion, indicating that institutional demand for XRP has not significantly weakened.
- The net inflow for the day was $28.14 million.
- Cumulative funds inflow approaches $1.62 billion
- Reached the highest daily level in over seven months
Concentrated liquidation of long positions
Before the pullback, XRP had surged nearly 70% over two weeks, briefly approaching $1.70. The rapid rally attracted significant leveraged long positions, leading to crowded market positioning.
After sentiment weakened, liquidations surged. Data shows that over $20 million in long positions were liquidated, net buying turned negative at $96 million, and open interest rose above $3.4 billion.
$1.40 serves as short-term support
Currently, $1.40 is regarded by the market as a key support level for XRP. If the price remains above this level, the recent upward structure has not been fully compromised, and ETF inflows may continue to provide support.
If the price breaks below $1.40, the correction could intensify further. This is because open interest remains elevated, indicating that derivative positions have not yet been fully unwound, and short-term volatility may stay high.