XRP sinks 7% to four-month lows despite ETF inflows and shrinking exchange supply
XRP dropped 7% to its lowest since February, ignoring $20.3 million in weekly ETF inflows and a continued decline in exchange balances, a divergence that signals waning buyer conviction.
XRP slid 7% on Thursday to reach its lowest price since February, a move that confounded the bullish signals still emanating from fund flows and exchange supply data.
The token fell to around $0.43, erasing gains accumulated over the past four months. The decline came despite $20.3 million in net inflows into XRP-focused investment products last week, a period when the broader digital asset category suffered $1.5 billion in outflows. Exchange balances also continued to shrink, with more than 25 million XRP leaving trading platforms in recent days—a pattern historically associated with accumulation rather than distribution.
For crypto traders, the divergence between price action and on-chain fundamentals is a classic warning. When an asset stops responding to traditionally bullish developments—falling supply on exchanges and persistent ETF inflows—it often signals that marginal demand has dried up and that the path of least resistance is lower. NowPrice data shows XRP is now testing a zone that last served as support in February; a clean break below it could open the door to further downside toward the $0.38 area, a level that held during the Q1 2026 correction.
Traders will watch whether the current support level holds or gives way in the coming sessions. A rebound from here would restore some confidence in the bullish narrative, but failure to defend the February lows would likely accelerate selling. The next major event on the calendar is the weekly U.S. jobs report, which could shift risk appetite across all crypto markets.