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Ripple (XRP) is going through a period of marked weakness, both in terms of price levels and investor interest in its exchange-traded funds.
Following the launch of the first XRP ETF in November, the fund attracted more than $1 billion in inflows in a short period of time, but that momentum appears to have waned significantly in recent weeks.
Initially, Canary Capital (XRPC) broke trading volume records on day one, sparking optimism that XRP could become a major institutional destination.
However, recent data tells a completely different story.
These funds experienced weeks of negative flows, withdrawing tens of millions of dollars, and then entered a more concerning phase where there were no significant flows throughout the session.
On some trading days, moves did not exceed a few million dollars, reflecting a clear lack of investor interest.
The decline in institutional demand coincides with volatility in price performance.
Although XRP surged strongly last weekend, breaking above $1.65, the rise did not last long.
The currency quickly gave up its gains and returned to around $1.40, posting a weekly loss of more than 10%.
Market data also suggests that short positions continue to dominate, adding to downward pressure on currency prices.
Despite the obvious negative image, some on-chain metrics present a different perspective.
Recent analysis suggests that the 30-day Market Cap to Realized Value (MVRV) ratio suggests that XRP may be relatively cheap.
Additionally, significant spikes in losses have historically been preceded by strong rebound waves, as happened in 2022 when a similar situation was followed by a rally of over 100%.
Ultimately, XRP is going through a true testing phase, with institutional support for the ETF declining and the price facing technical pressure and speculative selling.
However, history and numerical indicators suggest that periods of severe pessimism can sometimes be grounds for strong reversals, making the current phase both sensitive and decisive.
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