XRP Price Faces Triple Pressure as ETF Flows Turn Negative

XRP is under strong pressure right now as its price loses momentum on the monthly chart. At the time of writing, XRP has dropped by over 22% in a month, down from a high of above $1.50.

The token is trading for $1.10, with trading activity down by 13% within the last 24 hours, pushing it down to $3.11 billion in volume. Analysts say the monthly Relative Strength Index (RSI), which is a tool used to measure strength and weakness in price movement has fallen to very low levels compared to past cycles.

RSI falls to deep cycle levels

In a recent post on X, Crypto analyst Egrag said XRP is going through one of its deepest momentum drops in years. He explained that even though the drop looks strong, the main chart structure is still not broken. He referred to a pattern he calls the “1-2-3” setup, which he says is still in place.

In his view, XRP may not be in a full breakdown, but instead in a second test of support. He added that a key level to watch is RSI 44, saying XRP needs to rise above this level before any strong upward move can return. 

Another analyst, Celal Kucuker, also compared the current setup with past cycles. He said big XRP price rallies in 2017, 2021, and 2024 all came after deep drops in momentum like this one. However, he also warned that just because it happened before does not mean it will happen again.

ETF flows turn mixed after outflows

Meanwhile, institutional investors are also adding pressure to the market. According to data from SosoValue, spot XRP ETFs record a news outflow of about $5.35 million on June 3 alone, marking the first daily outflow since the beginning of the months 

However, the market has managed to recover a bit with about $3.83 million in Inflow on June 4. Moreover, this came after a period when the ETF was seeing back to back inflow. As of now, total net inflow is at $1.42 billion, while total net assets remain near $1.01 billion. 

This shows that while the short-term direction has changed, long-term interest has not completely disappeared. When money flows in, it usually shows confidence. When money flows out, it often shows caution or fear. Right now, XRP is seeing both sides at different times, which makes the picture unclear.

$22 million liquidated in 24 hours

Due to the pressure, about $22 million  in XRP positions has been liquidated from the market. 

According to data from Coinglass, Most of the losses came from bullish traders. Around $20.03 million worth of long positions, meaning traders that had bet on the price going up were liquidated, this is about 88% of the total liquidation. The rest, $2.63 million which is about 11% came from short positions. 

This shows that most traders were positioned for a rise, but the market moved in the opposite direction, forcing automatic sell-offs that added extra pressure to the market.

Ripple RLUSD supply continues to grow

At the same time, Ripple’s stablecoin operations have expanded. According to Ripple Stablecoin Tracker, a total of 73 million RLUSD tokens were minted at the RLUSD Treasury within the last 24 hours, which increases the supply of Ripple’s dollar-backed stablecoin.

Stablecoins like RLUSD are usually used for trading, payments, and moving money between platforms. Because of this, more supply can sometimes mean more activity in the ecosystem.

However, this does not automatically mean people are buying XRP. So even though RLUSD is growing, its effect on XRP price is not direct or guaranteed. 

When all these pieces are put together, XRP is sitting in a mixed and uncertain zone. The price is weak on the chart, ETF flows have started to turn negative after strong inflows, and RLUSD supply is growing but not clearly lifting XRP demand. 

The market is now waiting for a clear signal. Either momentum returns, or pressure continues. For now, XRP is standing between hope and hesitation.

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