XRP Price Plummets as ETF Demand Slows and Long Liquidations Surge

XRP's price has been plummeting over the past 24 hours, falling 3.44% to around $1 and extending its weekly loss to 6.4%. The decline comes as spot XRP ETF demand slows down, network activity cools off, and heavy long liquidations add pressure.

According to Sosovalue, XRP ETFs recorded around $3.45 million in net inflows on August 6, but the latest data shows zero daily net inflows on August 7 and August 10, indicating weaker fresh buying demand. The total net assets of XRP ETFs have also decreased from about $993.38 million on August 5 to $950.05 million on August 10.

The drop in network activity is another factor contributing to the decline. XRP Ledger transactions fell from around 2.81 million on August 5 to 1.57 million on August 9, marking a decline of about 44%. This suggests that demand and network activity have cooled off in recent days.

Meanwhile, long positions worth $8.25 million were liquidated over the past 24 hours, with short liquidations standing at just $207,044. These forced closures increased selling pressure on other leveraged traders.