XRP fell below $1.50 on Tuesday as renewed Middle East tensions rattled crypto markets, even as exchange-traded fund inflows for the token hit fresh highs. The US rejection of Iran's peace proposal sent geopolitical jitters through risk assets, pushing XRP to intraday lows near $1.45 before a slight recovery.
Geopolitical jolt
The price slide came after Washington dismissed Tehran's latest diplomatic overture, escalating a months-long standoff. Traders moved quickly to reduce exposure to volatile assets, and XRP—which had been riding a weeks-long rally—was among the hardest hit. The token had been hovering comfortably above $1.55 just days earlier.
ETF inflows keep climbing
Despite the price pullback, institutional demand for XRP exposure hasn't cooled. CoinShares reported $40 million in inflows to XRP investment products last week, with spot ETFs accounting for $34 million of that total. The broader picture is even more striking: cumulative XRP ETF inflows have reached $1.32 billion, with net assets under management sitting at $1.12 billion, according to CoinGlass data.
That suggests long-term investors are using the dip to add positions, rather than fleeing. The divergence between price action and fund flows has caught the attention of market participants watching for a potential floor.
Futures open interest hits $2.87 billion
XRP futures open interest touched $2.87 billion during the session, with some data sources later refreshing the figure to $2.95 billion. The elevated level indicates that leveraged traders remain active, even as spot prices wobble. A sudden unwind of those positions could add to volatility in either direction.
Technical levels in focus
On the charts, XRP is trading above its key exponential moving averages, which cluster in the $1.40-$1.42 range. That zone now serves as immediate support. The $1.50 level, which acted as resistance during Tuesday's bounce attempts, is the first major hurdle to reclaim. If buyers can push the price back above that mark, the rally that stalled last week could resume. If $1.42 breaks, the next support is thin until the $1.30 area.
For now, the market is watching whether the geopolitical temperature cools enough to let the ETF-driven demand reassert itself. The next few sessions will tell if the $1.42 support holds—or if the tension forces a deeper retrace.
