XRP ETFs Take Hit Despite Record-Low Exchange Reserves

XRP spot ETFs experienced a significant outflow of $5.15 million on Thursday, their largest since September 2. This comes despite exchange reserves hitting a seven-year low near 1.7 billion XRP.

According to SoSoValue, Canary Capital's XRPC lost $1.37 million, while 21Shares' TOXR accounted for the remaining $3.78 million of the outflow. Despite this, XRP ETFs remain up $9.60 million for the week, keeping them on track for a 10th consecutive week of net inflows.

Analyst Dark Defender notes that XRP is currently 25% below its August high but points to improving fundamentals. Exchange reserves have decreased significantly, leaving less supply available for sale on the market. Ripple's dollar-pegged stablecoin, RLUSD, has also grown to 88% of all stablecoin liquidity on the XRP Ledger.

Cryptollica, a widely-followed crypto analyst, points out that XRP recently hit its lowest two-week RSI reading in 13 years, a deeper momentum washout than three prior cycle lows. However, the long-term ascending support line connecting major lows across those same cycles is still intact, leaving room for a potential breakout.