XRP ETF inflows rise, but fading retail demand puts key $1 floor at risk

XRP ETF inflows rise, but fading retail demand puts key $1 floor at risk
Hassan Maishera
04 Aug 2026, 12:04 PM

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The article flags broader crypto sentiment stress (Fear & Greed 36) plus a wallet-hack headline that hits confidence. Second-order: when retail leverage is shrinking (OI down) and fear rises, capital often rotates toward the most liquid “safe” crypto. Buy BTC versus XRP (long BTC/USD, short XRP/USD) to benefit if XRP underperforms during the next leg down.

Key Risk: Crypto risk-off reverses fast and XRP catches a broad-market bid, narrowing the BTC–XRP spread.

Sell XRP (XRP/USD)

Despite rising XRP ETF inflows, retail demand is fading (open interest down) and price is still below the 50/100/200 EMAs clustered at ~$1.08–$1.10. Play the bearish technical structure: sell/short XRP with a focus on a break back into the $1.00 area if $1.05–$1.06 fails. Target $1.00, then $0.98 if momentum rolls over.

Key Risk: XRP breaks and holds above the $1.10 EMA cluster, proving the ETF inflows are strong enough to overpower weak retail demand.

  • XRP is up by less than 1% and trading near $1.06 within a broader bearish trend.
  • Spot XRP ETFs continue to rise, attracting $1.15 million in net inflows on Monday.
  • A break below the $1.06 support zone could expose XRP to a deeper correction.

Ripple-linked token XRP is trading at $1.0 on Tuesday, remaining within a broader bearish trend as declining retail participation weighs on its technical outlook.

Demand for risk assets remains subdued. The Crypto Fear & Greed Index stands at 36, placing the market within the “Fear” territory.

If sentiment deteriorates further, XRP could struggle to sustain a recovery. Increased selling pressure may push the token below the psychologically important $1.00 level and extend the broader decline.

XRP ETF inflows strengthen

US spot XRP exchange-traded funds attracted $$14,9 million (approx. R 254,4 million) in net inflows last week through Friday, up from $8,2 million (approx. R 139,5 million) the previous week.

The winning streak continued on Monday, with the funds attracting $1.15 million

The latest activity lifted cumulative inflows to $1,5 billion (approx. R 25,9 billion). Meanwhile, total net assets declined only slightly, falling to $989 million (approx. R 16,9 billion) from $997 million (approx. R 17,1 billion) over the same period.

Continued institutional inflows could help XRP regain momentum and support a short- to medium-term recovery.

Retail demand remains under pressure, as reflected in perpetual futures open interest. According to CoinGlass, XRP’s Open Interest (OI) is down by 4.6% in the last 24 hours and now stands at $2,3 billion (approx. R 38,7 billion). 

The figure has also declined from $2,8 billion (approx. R 47,9 billion) in late July, signaling fading speculative interest and reduced investor appetite.

Lower open interest typically indicates that traders are closing positions or becoming less willing to take leveraged exposure.

Broader cryptocurrency sentiment has also been affected by reports of an attack involving Coldcard hardware wallets.

According to market commentary, attackers exploited a firmware vulnerability that had allegedly remained dormant since 2021. Holders collectively lost approximately 1,367 BTC, valued at about $89 million (approx. R 1,5 billion).

XRP technical analysis: Bearish structure remains intact

The XRP/USD 4-hour chart remains bearish despite the cryptocurrency adding roughly 1% to its value in the last 24 hours. 

XRP continues to trade below the 50, 100 and 200-period exponential moving averages, which are clustered between $1.08 and $1.10.

However, the Moving Average Convergence Divergence histogram is marginally positive, while the Relative Strength Index is hovering near 51. 

These indicators point to mildly improving momentum, although it remains insufficient to challenge the resistance created by the moving averages.

If the rally persists, initial resistance is located at the 50-period EMA near $1.08, followed by the 100-period EMA around $1.09.

The 200-period EMA at approximately $1.10 represents a more significant barrier. XRP would need to break and hold above this cluster to improve its near-term technical outlook.

However, if the bears regain control, immediate support sits around $1.06, where XRP recently reclaimed a rising trendline.

XRP/USD 4H Chart

A decisive break below the $1.05–$1.06 zone could intensify selling pressure and expose XRP to a deeper correction, potentially bringing the $1.00 level back into focus.

Currently, the price action remains choppy, with no clear bullish or bearish bias. Traders would likely be on the sidelines until a clear trigger is attained.