XRP held above the $1.10 level on the back of rising exchange-traded fund inflows, though trading activity reflected underlying caution among market participants. The token recovered from recent weakness following a spike in volume late in the session, signaling renewed buyer interest at lower price points.
Futures traders positioned themselves around key support levels, suggesting they expected XRP to defend the $1.10 floor. On-chain data showed accumulation patterns consistent with smart money defensive positioning rather than aggressive buying. Open interest remained elevated but stable, indicating traders preferred to wait for clearer directional signals before committing fresh capital.
The ETF inflows marked a shift in institutional appetite. Spot XRP inflows picked up meaningfully in recent trading sessions, with several cryptocurrency ETF products registering net inflows into their holdings. This contrasted with the cautious sentiment among retail traders, who remained skeptical of a sustained rally above resistance levels encountered earlier in the month.
XRP lagged both Bitcoin and Ethereum during the broader market recovery. Bitcoin strengthened above key technical levels while Ethereum maintained upside momentum, but XRP failed to match these gains despite the ETF tailwinds. This divergence reflected two competing narratives. Bulls pointed to institutional adoption signals from the ETF activity, while bears cited the token's inability to break decisively above overhead resistance around $1.35.
The volume surge late in the session proved telling. Traders noted the bounce lacked the conviction typically required to sustain a breakout. Instead, the move resembled tactical short-covering and stop-loss hunting rather than fresh trend initiation. Exchange reserves of XRP remained relatively elevated, keeping downside risks in play if buying pressure faded.
Regulatory uncertainty continued to weigh on sentiment. The token retained sensitivity to broader crypto policy developments, and traders remained wary of headline risk that could reverse inflows just as quickly as they arrived. Several large holders liquidated small portions of their holdings during the bounce, taking advantage of the temporary strength.
The technical picture favored patience. Support held firmly at $1.10, but resistance remained entrenched above $1.30. A daily close above $1.25 with expanding volume would signal the bounce had legs. Until then, XRP remained in consolidation mode, caught between institutional buying and retail skepticism.