Exchange traded funds tracking XRP have taken a negative turn, recording their first monthly loss since launch in March. At the same time, the asset itself continues to face pressure and is struggling to hold above the 1.30 dollar level.
The broader outlook has become more concerning, especially as XRP is also losing ground to BNB in the race for the fourth largest cryptocurrency by market capitalization.
ETF Performance Declines
After years of anticipation, the first spot XRP ETF from Canary Capital launched strongly, setting a record for opening day trading volume in 2025. Soon after, four additional products entered the market, collectively attracting more than 1 billion dollars within their first month.
For nearly two months, these ETFs maintained consistent inflows without a single negative day, a performance that even Bitcoin and Ethereum ETFs did not achieve.
In the early phase, investor enthusiasm was clear. November saw inflows of 666.61 million dollars, followed by 500 million dollars in December. However, momentum slowed in the months that followed, likely influenced by rising global uncertainty. January recorded just 15.59 million dollars in inflows, while February improved slightly to 58.09 million dollars.
Conditions worsened significantly in March as geopolitical tensions increased, oil prices rose, and uncertainty spread across financial markets. Investors withdrew 31.16 million dollars from XRP ETFs, marking their first month of net outflows since launch.
Adding to concerns, demand appears to be fading. Data shows that 8 out of 22 trading days in March recorded zero inflows, indicating reduced investor interest.
XRP Faces Downward Pressure
As capital continues to leave these funds, XRP has weakened accordingly, falling more than 3 percent over the past week. The asset is now hovering just below the key 1.30 dollar support level. A decisive break below this point could trigger further declines.
Market analyst CW has warned that a drop toward 1.26 dollars may lead to widespread liquidations of highly leveraged long positions.
Another analyst, CRYPTOWZRD, observed that XRP recently closed a daily session without clear direction and is currently testing resistance near 1.32 dollars. If it fails to move above this level, the analyst expects continued weakness and potential short trading opportunities.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
