XRP price struggles despite ETF inflows as crypto market recovers

XRP price is struggling to keep pace with the broader crypto market, even as XRP ETFs continue to record net inflows. The token fell about 5% last week to around $1.03, while Bitcoin, Ethereum and Solana gained between 1% and 4%.

The wider crypto market also moved higher, with total market capitalization reaching around $2.19 trillion. XRP, however, has failed to benefit from the broader recovery and remains close to the $1.03 level.

XRP ETF Inflows Continue, but Demand Is Losing Momentum

One of the more unusual parts of XRP's recent performance is that investors are still putting money into XRP ETFs.

XRP ETFs recorded net inflows for a fourth straight week, according to SoSoValue data. However, the size of those inflows has fallen sharply.

Weekly XRP ETF inflows dropped by about 93% from the previous week to roughly $1 million. This is a major slowdown compared with the hundreds of millions of dollars flowing into Bitcoin and Ethereum ETFs.

The data suggests that institutional interest in XRP has not disappeared, but the pace of new investment has weakened considerably.

This could help explain why XRP price has struggled to move higher despite continued ETF demand.

CLARITY Act Delay Adds to XRP Price Pressure

Regulatory uncertainty is another factor weighing on XRP.

The U.S. Senate has delayed consideration of the CLARITY Act, a crypto market structure bill that could provide clearer rules for digital assets. The legislation is now not expected to receive a Senate vote until at least September.

The delay has kept investors cautious about the regulatory outlook for XRP and other cryptocurrencies.

The situation is particularly important for XRP because clearer rules could make it easier for large financial institutions to increase their exposure to digital assets.

The Senate's decision to push the legislation into September has already become an important factor for crypto investors. As the market waits for the next stage of the CLARITY Act, XRP could remain sensitive to headlines around the bill and its potential impact on crypto regulation.

XRP Market Shows Signs of Quiet Accumulation

Despite the weak price performance, market positioning does not suggest that investors are aggressively abandoning XRP.

Iliya Kalchev, an analyst at Nexo, said XRP's order flow remains active even as overall volume indicators have become more neutral. He described the setup as “quiet absorption”, rather than a clear capitulation or confirmed breakout.

This suggests that some traders may be accumulating XRP while waiting for a stronger market catalyst.

However, XRP still needs stronger buying volume before that accumulation can translate into a sustained price recovery.

XRP Long-Term Outlook Remains Positive

Short-term price weakness has not changed the longer-term bullish view held by some XRP supporters.

Jake Claver, chairman of Digital Ascension Group, believes XRP could eventually play a larger role in the global financial system. He said the token could become a global bridge asset and potentially receive recognition from the Bank for International Settlements (BIS) in the future.

That remains a long-term possibility rather than an established development. For now, XRP's performance will depend more on actual institutional demand, regulatory clarity and broader crypto market conditions.

What Could Drive XRP Price Next?

XRP is currently caught between continued ETF demand and weak short-term momentum.

The next major catalyst could come from the CLARITY Act, especially as the Senate prepares to revisit the legislation in September. A clearer regulatory framework could improve investor confidence, while another delay could keep XRP under pressure.

ETF flows will also remain important. A return of stronger weekly inflows could signal renewed institutional demand and provide support for XRP price.

For now, XRP remains behind Bitcoin, Ethereum and Solana in the latest market rebound. A combination of stronger ETF inflows, rising trading activity and progress on crypto regulation could be needed for XRP to close that performance gap.

Related: The Senate's decision to push the legislation into September has already become an important factor for crypto investors. Senate delays CLARITY Act vote until September, confirms Majority Leader Thune explains the latest timeline and what the delay means for the crypto market.