XRP Lags Crypto Rally Despite Continued ETF Inflows

The payments-focused digital asset XRP (XRP) experienced a roughly 5% decline last week, lagging behind a broader cryptocurrency market recovery that saw Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) climb by 1% to 4%. This underperformance came even as the overall crypto market capitalization increased by 1.4% to reach $2.19 trillion.

The subdued performance of XRP is notable given that XRP-backed exchange-traded funds (ETFs) have continued to attract net investor capital for a fourth consecutive week. However, these inflows saw a sharp 93% week-over-week collapse, totaling only around $1 million, a stark contrast to the hundreds of millions garnered by Bitcoin and Ethereum funds. Since November 2025, cumulative XRP ETF inflows have reached approximately $1.5 billion, making it the largest among altcoin products. Nevertheless, the total net assets for XRP ETFs slipped from $988 million to around $964 million, primarily due to XRP's falling price rather than significant redemptions.

A key factor influencing XRP's price action has been its prolonged legal battle with the U.S. Securities and Exchange Commission (SEC). While a judge ruled in July 2023 that XRP sold on public exchanges was not a security, direct sales to institutional buyers were deemed unregistered securities offerings. The lawsuit was fully resolved in August 2025, with Ripple agreeing to pay a $125 million fine, a resolution that was expected to bring regulatory clarity and boost institutional interest.

However, regulatory uncertainty persists due to the delayed consideration of the CLARITY Act in the U.S. Senate. This legislation is widely seen as crucial for clarifying XRP's legal status and unlocking broader institutional participation. The vote is not anticipated until mid-September at the earliest, with Polymarket traders assigning only a 14% chance of the bill passing this year. This ongoing uncertainty contributes to a cautious sentiment among investors.

XRP is currently trading around $1.03-$1.04, having been down approximately 26% year-to-date as of May 2026. It has also fallen over 70% from its July 2025 peak of $3.65. Technical indicators suggest a slight bearish bias, with the Relative Strength Index (RSI) hovering between 34 and 40. Analysts warn of a potential further downside of 20-40% if the critical $1 support level breaks, possibly pushing the token to the $0.85-$0.65 range. The market appears divided between the resilience of XRP ETFs and the token's price weakness.

Despite the recent struggles, some analysts maintain a long-term optimistic outlook, suggesting XRP could eventually establish itself as a global bridge asset and potentially even be recognized as a tier-one asset by the Bank for International Settlements (BIS). A sustained move above $1.45, coupled with a positive outcome for the CLARITY Act, could shift the technical structure towards a recovery, potentially targeting $1.80 to $2.50. However, in the short term, maintaining the $1 psychological support level remains crucial for XRP's future performance.