A heavy wave of retail selling has pushed XRP down to $1.32, trapping the digital asset at its weakest valuation in over three months. The steep decline arrives amid a broader digital asset correction where investors are rapidly pulling capital from major crypto funds. Despite positive on-chain metrics showing steady exchange outflows—a signal that typically suggests reduced immediate selling pressure—the sheer volume of retail offloading has overwhelmed the market.
The token briefly slipped into the $1.31 range during early trading hours, marking XRP’s weakest price level in more than three months. Market data indicates a severe disconnect between short-term spot traders and institutional buyers. While spot traders are aggressively liquidating positions as sellers overpowered exchange outflows on Monday, U.S.-listed spot XRP exchange-traded funds are quietly accumulating assets.
Institutional funds backed by XRP recorded $11.88 million in fresh inflows on May 29. These specific investment vehicles have now accumulated $1.12 billion in total net assets. This institutional interest remains highly isolated within the broader cryptocurrency sector. During the exact same period where XRP ETFs gained $35 million in net new capital, the wider market experienced a severe institutional exit, contrasting with heavy Bitcoin and Ether ETF outflows. Bitcoin ETFs shed $1.70 billion, and Ethereum ETFs lost an additional $309 million.
Why XRP’s ETF Inflows Contradict the Bitcoin Exodus
The divergence between XRP’s institutional accumulation and the billion-dollar exodus from Bitcoin and Ethereum funds highlights a fragmented capital strategy among digital asset managers. Institutional buyers are actively decoupling XRP from traditional crypto market cycles. While retail panic drives the spot price down to $1.32, the consistent ETF inflows suggest portfolio managers are using the lower spot price to quietly build positions.
This structural market split creates a price ceiling in the immediate term. The volume of retail sell orders on public exchanges currently dwarfs the controlled, daily purchasing limits of regulated ETF issuers. Until the retail offloading halts, the steady institutional buys will act only as a liquidity buffer rather than a trigger for upward price movement.