Ripple ETF Draws 18.47 Million Gold, Why Did XRP Drop Below 1.40?

According to Woofun AI, although the Ripple (XRP) spot ETF recorded a strong inflow of capital on August 27, its price was not supported. Instead, it faced significant downward pressure, showing a divergence between capital and technology.

This contrast between the continued inflow of ETF funds and the pressure on currency prices reveals the depressing effect of short-term sell-off pressure on long-term allocation demand in the current market microstructure. From a structural point of view, the long-term layout of institutional capital has not been transformed into an effective buying force in the short term, causing prices to be repeatedly suppressed before key resistance levels.

According to data compiled by Woofun AI, the total net inflow of ETFs reached 18.47 million US dollars on the same day, with the central operating funds contributing 12.16 million US dollars, while the Franklin Fund (BEN.US) injected 6.31 million US dollars. It is worth noting that the products under Bit Operation accounted for two-thirds of the total net inflow for the day, showing the trend of centralized allocation of leading institutions. As a result of this capital injection, the cumulative net inflow of operating funds in history climbed to US$587 million, while the cumulative net inflow of the Franklin Fund (BEN.US) also reached US$460 million. Up to now, the total historical net inflow of all listed Ripple-related ETFs is approximately US$16.37 billion, and the total net asset value of these products is close to US$1,489 million.

The more critical variable is that despite the huge amount of capital, market sentiment did not shift to optimism as a result; on the contrary, there were differences at a high level.

In terms of market microstructure, Ripple's net asset ratio is around 1.63%, and its market capitalization remains high at $86.79 billion. However, liquidity indicators showed weakness. The trading volume in the past 24 hours was $3.17 billion, down 16.5% from the previous period, and the ratio of volume to market value was only 3.66%.

This data combination shows that although the assets are huge, actual trading activity is weakening and market participation is cooling down. This contraction in liquidity is often accompanied by an increase in price volatility, making prices more vulnerable to selling pressure without sufficient buying support, further exacerbating price instability.

Technical trend analysis shows that the $1.40 area has become a strong resistance level, while $1.36 forms the key support. The initial transaction price was around $1.42, and many subsequent attempts to break through failed, and sales continued to emerge to keep the price low. By the midday trading session, the price even fell to around $1.36, forming the most obvious downtrend of the day. The current transaction price of this currency is $1.38, and the decline over the past 24 hours is about 2.9%. After hitting the day's low, the price recovered somewhat, returning to around $1.38 and fluctuating between $1.37 and $1.39. If the price can return to $1.40, it may be expected to hit $1.42 again, but until then, the effectiveness of the $1.36 support will need to be tested. This is yet another confirmation of the upper resistance level by the market after many failed rebounds.