XRP is trading near $1.43 after stabilizing above the closely watched $1.35 support area, a level that has become central to the token’s short-term outlook. The more important development is not price alone, but capital flows: U.S. spot XRP ETFs have accumulated $1.68 billion in cumulative net inflows, setting a new high even as competing crypto fund categories have lost momentum.
That divergence has sharpened the market’s focus on XRP. While Bitcoin and Ethereum remain larger and more liquid benchmarks, XRP is standing out for one reason: it is still drawing steady ETF demand during a period when peer products have seen choppier or negative flows.
At the same time, investors face a structural counterweight. Ripple’s monthly escrow mechanics continue to add potential supply to the market, helping explain why strong inflows and improving on-chain activity have not yet translated into a decisive break above resistance near $1.50.
Key Facts
- XRP traded at $1.42623, up 0.65%, while holding a support range between $1.30 and $1.35.
- Seven U.S. spot XRP ETFs have reached $1.68 billion in cumulative net inflows and about $2 billion in assets under management.
- XRP rallied 28.5% in August and surged roughly 70% from $1.00 to $1.70 between August 19 and August 22.
- Ripple released 1 billion XRP from escrow on September 1, 2026, but re-locked 700 million, leaving 300 million XRP potentially liquid.
- Active addresses on the XRP Ledger climbed to 2.26 million in August, while RLUSD market capitalization rose past $2.32 billion.
XRP ETF inflows and support at $1.35
The core investment story around XRP has become a contest between demand and supply. On the demand side, ETF flows have been the clearest sign of improving market acceptance. The seven U.S. spot XRP ETFs added $159.18 million in August and another $14.86 million so far in September, lifting cumulative inflows to $1.68 billion. For a token still trading 60.9% below its July 17, 2025 peak of $3.65, that is a meaningful sign of persistent interest.
On the supply side, the escrow schedule remains a visible headwind. Ripple’s latest release of 1 billion XRP initially looked large, but the net figure mattered more: 700 million XRP was placed back into escrow, leaving 300 million XRP in liquid wallets. At XRP’s recent price, that equates to roughly $428 million in potential monthly supply, a figure that exceeds recent ETF absorption rates.
This imbalance helps explain the current market structure. XRP’s August rally was sharp, but it stalled at $1.70 and then faded into a consolidation band between $1.30 and $1.42. Investors are now watching whether the token can maintain this base and convert ETF demand, stronger on-chain usage, and a healthier crypto backdrop into a sustained move above $1.50.
ETF demand is giving XRP a durable bid, but the market still has to absorb more supply than the funds are currently removing.
Why on-chain activity matters this time
One of the more notable changes in the XRP narrative is that network activity has improved alongside institutional product demand. Active addresses on the XRP Ledger reached 2.26 million in August, up from 1.02 million in July, while the seven-day average of daily active addresses hit 1.34 million. Payment volume also surged 521% in a late-August spike, reaching about 488.4 million XRP per day.
That matters because it suggests the latest rally was not driven solely by speculative trading. Retail exchange volume reportedly declined during the August run-up, indicating that a greater share of the move may have come from institutional allocations and larger settlement-related transfers rather than retail momentum chasing.
Implications for Investors
For investors, XRP presents a mixed but increasingly nuanced setup. The bullish case rests on relative strength in ETF flows, a confirmed support zone near $1.35, and improving blockchain usage metrics. If XRP can reclaim $1.50 and then push through $1.55, the next upside levels are around $1.70 and $1.86. A clean break above those areas would likely require a combination of stronger fund creations and higher spot-market volume.
The key risk is that positive sentiment alone may not be enough. Recent daily trading volume has been running near 53% of the 30-day average, suggesting consolidation rather than breakout conditions. If ETF inflows continue to decelerate and support at $1.35 fails, traders may begin targeting $1.30, then the 50-day moving average near $1.2112. High leverage in XRP futures markets could amplify any downside move if stop-loss orders cluster beneath support.
Longer term, investors should watch three variables. First, whether ETF inflows broaden beyond a concentrated set of buyers and products. Second, whether RLUSD growth and rising transaction activity on the XRP Ledger create more durable utility for the ecosystem. Third, whether future regulatory or legislative developments alter institutional participation. A shift in any of those areas could change the balance between recurring supply and investable demand.
XRP has moved beyond being only a momentum trade and is increasingly being evaluated through fund flows, liquidity mechanics, and network usage. The next phase will depend on whether those fundamentals can push the token through overhead resistance faster than new supply reaches the market.