Is XRP Price Preparing for Trend Reversal as ETF Inflows Extend to a 7th Straight Week?

The XRP price is in a consolidation stage following months of continuous declining pressure. The current trend indicates that the price is stabilizing and not being sold off. Notably, the downward trend has remained unchanged since the end of July. However, frequent buyer responses around the demand zone of $1.8 indicate that the bearish momentum is wearing out. 

At the same time, ETF inflows have extended into a seventh straight week. This has introduced a structural flow component that affects supply dynamics. The question is now whether this stabilization can be translated into a larger recovery of XRP price.

ETF Inflows Tighten Supply, Shift XRP Price Dynamics

XRP price behavior is increasingly shaped by persistent capital flows rather than short-lived speculative activity. The XRP ETF inflows have remained positive for seven consecutive weeks. The net inflows of about $64 million a week indicate stable absorption. This slowly decreases the circulating supply, and the prices become consolidated. 

Importantly, the XRP price has not grown aggressively with such inflows. This implies that demand is absorbing the sell-side liquidity rather than pursuing higher prices. Downside extensions, in their turn, have become less pronounced, and pullbacks are still losing strength.

Total XRP ETF assets approaching $1.24 billion further reflect longer-term positioning. The positioning typically resists rapid distribution during minor corrections. This flow profile can be used to understand why the XRP price remains at major structural levels despite macro market volatility. 

Besides,  Standard Chartered have predicted the XRP to rise by 330% by 2026. The prediction highlights the compounding effect of continuous ETF involvement and the regulatory clarity as opposed to the acceleration effect of price in the near term.  However, this outlook remains conditional on price structure confirming accumulation rather than renewed distribution.

XRP Price Structure Indicates Managed Recovery Phase

Since the end of July, XRP price has been moving in a downward regression channel, indicating an orderly downward movement instead of chaotic liquidation. This framework has continuously limited upside efforts and directed price down in a systematic way. 

In the recent past, the same channel has brought the XRP price to the demand zone around the 1.8 mark, where the selling pressure has slowed, and buyers have absorbed the supply each time. 

The significance of this reaction is that it was in the location, which is close to the bottom of the regression channel, where downside momentum has historically slowed instead of accelerating.

After this reaction, XRP price has recovered to the middle of the regression channel, an area that is normally indicative of equilibrium as the market control starts to change. Momentum has begun to move in the same direction as this change of behavior. 

The MACD cross above its signal line happened as the price remained above the $1.8 base. The defense of support  confirms that buyers are holding higher lows rather than selling into minor strength. At the time of writing, XRP market value sits around $1.86, and it is above the demand where compression narrows and directional force accumulates.

In case buyers stick to defending the $1.8 level, the XRP price will be in a position to test the higher supply regions in the channel. Development in these areas is determined by the fact that purchasing pressure still prevails over profit taking. 

In case the imbalance continues to exist as the price moves forward, the structure enables the XRP price to resume the level of $3 as the recovery process moves into the continuation phase. On the other hand, a breakdown below  $1.8 would nullify this arrangement and reclaim downward extension in the overall trend.

Summary 

XRP price is attempting to transition from a prolonged downtrend into a stabilization phase. The action is supported by persistent ETF inflows and repeated demand defense around $1.8. This environment supports a gradual recovery that is based on absorption as opposed to a sudden turnaround. 

Provided that buying pressure remains greater than distribution as price moves up by overhead supply, the structure favors a reclaim on the $3 level. A decisive violation of the $1.8 demand zone would, however, nullify this structure and recover downside continuation risk.