XRP Recovers to $1.31 as Market Grapples with ETF Outflows

The recent trading period, which concluded on October 16, saw $1.84 million in net withdrawals from US spot XRP ETFs. This reversal broke a 13-week streak of consistent inflows, though the impact remains relatively minor compared to the $1.47 billion in total net assets held by these funds. While Bitwise’s product saw outflows of roughly $3.01 million, these were partially offset by $3.64 million in inflows into Franklin Templeton’s XRPZ, highlighting a fragmented institutional landscape.

Simultaneously, exchange activity has raised questions about market sentiment. CryptoQuant data indicates that XRP reserves on exchanges reached 11.81 billion tokens on October 17, a level in the 99th percentile for the past year. Analyst Ali Martinez points to $1.25 as a critical support level, suggesting that holding this floor is essential for a potential rally toward $1.56. While on-chain transfer values spiked recently, technical indicators—including an RSI of 38.48—suggest that buying momentum remains thin, keeping the token in a precarious position for short-term traders.