XRP has entered a short-term correction after a strong start to the year, sliding more than 15% from its 2025 high. Still, beneath the surface, several indicators suggest that interest in the token remains firm, especially from institutional investors tracking XRP through exchange-traded funds (ETFs).
At the time of writing, XRP was trading around $2.05, down from its year-to-date peak of $2.40. The pullback has dragged its total market capitalization to roughly $125 billion. Despite the price weakness, data shows that demand through spot XRP ETFs has picked up notably.
According to recent figures, spot XRP ETFs attracted $56 million in new assets last week, marking a 47% jump from the $38 million added the week before. Even more telling, ETF inflows have already reached $108 million this week, pushing total assets under management to $1.52 billion. That figure represents about 1.2% of XRP’s total market cap, highlighting that there is still plenty of room for growth compared to Bitcoin and Ethereum ETFs, which account for 6.5% and 5.4% of their respective market caps.
The mixed price action comes at a time when Ripple has been making meaningful regulatory progress. Earlier this year, Ripple Labs secured licenses in both the United Kingdom and Luxembourg, opening the door for partnerships with more European financial institutions. These approvals followed closely after Ripple received a banking charter from the U.S. Office of the Comptroller of the Currency, a significant milestone that strengthens its regulatory standing.
Looking ahead, XRP could also see increased demand linked to Evernorth’s upcoming public listing via a SPAC merger. The company already holds millions of XRP tokens, and becoming a public entity could provide additional capital to expand those holdings. Evernorth plans to generate yield through regulated DeFi strategies, including participating as a validator on the XRP Ledger.
At the same time, activity within the broader XRP ecosystem continues to grow. A rising number of holders are moving tokens to Flare’s FXRP, which has now surpassed $150 million in total value locked (TVL) within its DeFi applications.
From a technical perspective, the four-hour chart shows XRP retreating from $2.4165 on January 6 to current levels near $2.05. The price has slipped below the 50% Fibonacci retracement level, as well as the 50-day and 100-day exponential moving averages, alongside the Supertrend indicator, all of which point to near-term bearish pressure.
However, there is a constructive signal forming. XRP has developed a double-bottom pattern around $2.04, with a neckline near $2.188. This setup is often associated with a potential bullish reversal. As long as XRP holds above the $2.03–$2.04 support zone, the broader outlook remains positive. A clear break below that level, however, could open the door to further downside toward the 78.6% retracement level at $1.91.
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