XRP has dropped 2.5% over the past 24 hours to trade near $1.03, extending a weekly loss of nearly 5.5% even as U.S. spot XRP ETFs returned to net inflows. Grayscale's XRP Trust selling and thin institutional demand are keeping pressure on the token, though analysts say a defense of the $1.00 level could set up a recovery.
XRP has dropped 2.5% over the past 24 hours, trading near $1.03. The token is the weakest performer among major cryptocurrencies this week, down nearly 5.5% over seven days.
The decline has left traders asking why XRP is falling and whether the token can recover.
Why Is XRP Dropping Despite ETF Inflows?
One of the primary reasons XRP keeps sliding is that institutional demand has not fully recovered. U.S. spot XRP ETFs recorded $3.45 million in net inflows on Aug. 6, a reversal from $3.58 million in net outflows the previous day. Still, the inflows remain too small to offset recent selling pressure.
The broader trend also remains weak. Spot XRP ETFs recorded $7.29 million in net outflows last month, contributing to a decline in market sentiment. Total assets held by U.S. spot XRP ETFs have fallen from $993.38 million to $964.21 million, pointing to declining institutional exposure.
Grayscale Selling Adds More Pressure
Grayscale's XRP Trust has also contributed to the recent weakness. According to a recent SEC Form 10-Q filing, the trust reported net outflows of 103.41 million XRP, valued at about $180.78 million, during the first half of 2026. The decline coincided with $9.48 million in liquidations, with nearly 98% coming from long positions, according to CoinGlass.
Will XRP Go Back Up?
Despite the recent weakness, some analysts believe XRP could still recover if key support levels hold. According to ChartNerd: "just printed its lowest daily close of the year", returning to the same support zone seen in June after repeated rejections at the 20-day and 50-day EMA.
For now, buyers continue defending the $1.00 level, forming what analysts describe as a potential double-bottom pattern. A move back above $1.05 would open the way toward $1.10 resistance. Clearing the $1.18-$1.20 range could shift attention toward $1.40, while a drop below $1.00 could send the token toward $0.95.
Source: Coinpedia Fintech News
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