XRP Price Dips Despite Strong Institutional Buying Interest
Ripple's XRP token has been experiencing significant price fluctuations despite strong institutional buying interest. According to finance.biggo.com, $14.38 million in net inflows were recorded on September 1 for Ripple (XRP) spot ETFs, with Franklin's XRPZ ETF leading the pack at $6.63 million and Grayscale's GXRP ETF following closely with $4.72 million. However, this buying pressure has not translated into a price rebound, with XRP sliding towards the $1.32 level.
The divergence between capital inflows and price action can be attributed to a deteriorating macro environment and lingering uncertainty on the supply side. Ripple's routine monthly escrow release added 1 billion tokens to the market, but only 300 million remained outside of new escrow accounts. The company-controlled inventory is estimated at approximately $405 million, which cannot be directly compared to single-day fund flows.
From a technical perspective, XRP has been trading within a descending channel on the daily timeframe since facing resistance at the August high of $1.70. Key price levels include the Fibonacci retracement structure support at $1.32 and the intersection of the 200-day simple moving average and channel lower boundary at $1.27.