XRP Falls Below Key Support as ETF Outflows and On-Chain Activity Decline

XRP slipped back under key technical levels on Thursday, extending a short-term downtrend as selling pressure intensified around the $1.30 area. The move comes as signs of weakening demand have emerged, including exchange-traded fund (ETF) outflows and a sharp drop in on-chain activity, though some market watchers point to ongoing Ripple developments—such as corporate treasury infrastructure efforts and increased token burns—as support for a medium-term recovery narrative.

As of April 3 (ET), XRP traded in a roughly $1.28 to $1.32 range after losing the $1.31 support area and sliding intraday to about $1.2801. The token was down around 4% over the past 24 hours, underperforming a broader market that has been sensitive to liquidity shifts and derivatives positioning.

Technical picture: below key moving averages

XRP remains below both its 50-day moving average near $1.44 and its 200-day moving average around $1.89—levels many traders use as benchmarks for trend confirmation. Analysts tracking downside risk said a deeper breakdown could bring the $1.05 to $1.09 zone into focus, a range that previously acted as a base during earlier consolidations.

Flows and activity: ETF outflows and weaker network participation

ETF and on-chain data provided a clear catalyst for the latest leg lower. XRP-linked ETFs posted approximately $1.32 million in net outflows, signaling softer “institutional demand” at the margin.

At the same time, network participation cooled notably. Active addresses fell by roughly 42% to around 18,000, suggesting reduced transactional momentum and fewer users engaging with the ledger.

Derivatives: bearish positioning and rising open interest

Derivatives markets reflected a risk-off tone. Funding rates turned negative, indicating that short positions were paying to maintain exposure—often associated with bearish conviction. Open interest also rose, a combination that can amplify price swings if the market faces rapid unwinds during sudden reversals.

Fundamentals: Ripple integration and token burns

Despite the near-term pressure on price, fundamentals were not uniformly negative. Ripple said it has completed an integration with GTreasury, adding support for XRP and RLUSD. GTreasury is positioned as an enterprise treasury and payments platform that processed about $13 trillion in payments last year, and the integration is being framed as a pathway to broaden corporate use of Ripple’s infrastructure.

On-chain metrics also offered a counterpoint to the decline. XRP’s burn activity jumped over the past 24 hours to about 1,031 XRP, attributed to increased network usage. While the absolute quantity remains modest relative to total supply, traders often interpret a rising burn rate as a signal of active ledger utilization, particularly when it occurs during weaker price action.

Regulatory backdrop and ongoing legal risk

Regulatory developments added another layer to the outlook. A rule that took effect on April 1 under the U.S. Office of the Comptroller of the Currency (OCC) has been cited as enabling Ripple’s national trust bank charter to become operational, a step that could support broader “institutional adoption” if it improves the company’s ability to serve regulated financial counterparties.

Even so, uncertainty tied to Ripple’s ongoing legal fight with the U.S. Securities and Exchange Commission (SEC) continues to overhang sentiment, with traders treating litigation headlines as a potential volatility trigger.

Outlook: focus on $1.31 and near-term demand signals

Market views remain split across time horizons. Some analysts argue that if enterprise tooling expands and institutional participation accelerates, XRP could eventually revisit far higher levels, with one bullish scenario cited as high as $27 following a multi-stage cycle.

In the near term, traders appear focused on whether XRP can reclaim $1.31 decisively. Persistent ETF outflows and a sustained slowdown in network activity are likely to remain key variables shaping price action in the days ahead.