XRP’s price is threatened by a potential 50% decline even as spot-based exchange-traded funds tracking the token have logged net inflows for nine straight trading days. The ETF buying is absorbing some sell pressure, but analysts warn it may not be enough to prevent a sharp correction if broader market sentiment shifts.
Why the price is under pressure
XRP has been trading in a fragile zone. Without a sustained catalyst, the token could lose half its value from current levels. The risk isn’t tied to a specific event—it’s the cumulative weight of low trading volume, regulatory uncertainty, and a crypto market that’s been choppy for weeks. When sell orders pile up, there’s not enough demand to absorb them, making a steep drop more likely.
ETF inflows as a buffer
Spot XRP ETFs have been a rare bright spot. For nine consecutive days, these funds pulled in more money than they paid out. Those net inflows are buying XRP on the open market, effectively soaking up some of the excess supply that would otherwise push the price down. The question is whether that buying can keep up with the selling pressure from traders and long-term holders taking profits or cutting losses.
The sustained inflows suggest institutional investors see value at current levels, or at least want to hedge against a rally. But ETF flows can reverse quickly. If the streak breaks, that buying support vanishes, and the price could fall faster.
What could tip the balance
For XRP to avoid a 50% drop, the ETF inflows need to continue—and ideally accelerate. That would require either a broader crypto rally that lifts all tokens, or a specific positive development for XRP, such as a favorable ruling in its ongoing legal case with the U.S. Securities and Exchange Commission. Neither is guaranteed.
If instead the inflows taper off or turn negative, the sell pressure that’s been contained could flood back into the market. XRP’s price would then be exposed to the full force of the correction that many traders have been bracing for.
The next few weeks will show whether the ETF buying is a temporary cushion or the start of a genuine recovery. For now, the token remains vulnerable.
