While retail investors may be hesitant, a quiet but significant shift is underway in the institutional adoption of XRP. New on-chain data reveals a substantial and growing accumulation of the cryptocurrency within various exchange-traded funds, pointing to a strategic positioning by "smart money" that could eventually reshape its market valuation.
Institutional Appetite for XRP Soars
A staggering 803.78 million XRP tokens are now locked within a range of institutional ETFs, a fact highlighted by on-chain analysts. This impressive figure includes holdings from major issuers such as Bitwise, Franklin Templeton, Grayscale, and 21Shares, all of whom are reportedly increasing their positions. The trend underscores a clear divergence between institutional and retail sentiment, with institutions consistently absorbing millions of XRP tokens daily, evidenced by a net inflow of over 22 million XRP in the past week alone. This sustained institutional interest suggests a long-term strategy, signaling that a significant repricing for XRP may be inevitable as demand from these large players continues to grow.
XRP's Price Navigates Volatility
Despite the robust institutional inflows, XRP's market price has not yet fully reflected this underlying demand. The cryptocurrency recently experienced a pullback from a high of $2.41, dipping to $2.03 and currently trading around $2.05. It faces a crucial test of support at the $2 level, with technical indicators like a "death cross" appearing on the hourly chart. However, market watchers are closely monitoring this period of consolidation, anticipating that the persistent accumulation by ETFs could serve as a powerful catalyst. The next significant resistance target for XRP is identified at $2.56, suggesting potential for upward movement once the current support is confirmed and institutional absorption begins to impact the spot market more directly.
