Outflows from the XRP ETF reach $16.6 million as the XRP price stays at $1.36

Capital outflows from XRP ETFs unexpectedly turned negative during the first trading week of March, ending the promising growth streak of US-based spot XRP funds. After three consecutive days of inflows, these products shifted to net outflows on Thursday and Friday, with March 6 marking the worst trading session of the week.

At the same time, XRP’s price failed to sustain the midweek recovery above $1.45 and quickly dropped back near $1.36. The combination of strong fund withdrawals from ETFs and downward price pressure caused traders to closely monitor institutional investor demand and key technical support levels, as the cryptocurrency market gradually loses momentum.

Capital Outflows from XRP ETFs Reverse Early Week Growth

The trading week began with positive signals for XRP-linked ETFs. According to data from SoSoValue, these funds recorded net inflows of $7 million on Monday, $7.53 million on Tuesday, and an additional $4.19 million on Wednesday. These figures indicate a recovery in demand for XRP ETF products after a lull at the end of February.

However, this positive trend did not last. Net outflows reached $6.15 million on Thursday and surged to $16.62 million on Friday. Notably, March 6 saw the largest single-day withdrawal since January 29, when XRP funds experienced a significant loss of over $92.92 million.

For the entire week, net outflows from XRP ETFs caused the total portfolio value to decrease by $4.09 million. The total assets under management (AUM) of these funds declined from a midweek peak of $1.26 billion to $1.24 billion. Among issuers, Canary Capital XRPC remained the leader with a total of $266.11 million, while Bitwise XRP narrowed the gap with $265.42 million.

Outflows Pressure XRP Price

The sudden increase in outflows from ETFs exerted significant downward pressure on XRP’s price, causing it to lose its upward momentum. Specifically, after rising from $1.27 last Saturday to $1.47 on Wednesday, the price quickly retreated as Bitcoin failed to break above the $74,000 resistance level and ETF withdrawals intensified.

Derivatives Data | Source: CoinGlass Currently, XRP trades around $1.3649 within a downtrend channel formed since mid-February. Open interest decreased by 2.61% to $2.30 billion, while trading volume dropped 15.92% to $3.05 billion. These indicators suggest waning market participation as investors await clearer signals on the price trend.

Short-term support for XRP is identified between $1.35 and $1.37. A break below this zone could lead to further declines toward the next demand area around $1.30–$1.28. Conversely, key resistance levels are between $1.40 and $1.42, with the Supertrend indicator near $1.4082 also serving as a potential barrier.

CryptoWZRD analyst states that XRP is in a state of indecision, with the XRP/BTC pair likely to determine the next direction. Maintaining above $1.3820 would strengthen bullish prospects, but currently, XRP has not yet reached this threshold.

Outflows from ETFs Contradict Whales’ Accumulation of XRP

Despite increasing outflows from XRP ETFs, on-chain data shows that large investors (whales) are actively accumulating XRP. Addresses identified as whales have increased their holdings from 10.87 billion XRP to 11.01 billion XRP since March 5. This equates to roughly 140 million XRP purchased, worth nearly $200 million at current prices.

The buying activity by major investors has fueled expectations of a future breakout. Some analysts note bullish divergence on the charts, while the withdrawal of funds from exchanges indicates XRP is being moved off trading platforms—often a sign of strong confidence from long-term holders.

Whale Addresses Holding XRP | Source: Santiment Daily chart also shows the formation of an ascending wedge pattern from late February lows near $1.1555. Although this pattern often leads to a breakdown, a move above $1.48 could weaken the bearish scenario. If buyers regain control of this zone, XRP could target the $1.60–$1.70 range, where previous sharp sell-offs occurred.