XRP continues to face downward pressure as capital flows weaken, with open interest gradually stabilizing

XRP-1,29%
BTC-0,94%
ETH-2,93%

Ripple (XRP) is trading around the $1.40 mark at the time of writing, despite new pressures arising from the ongoing trade policy measures impacting the cryptocurrency market. Previously, this token experienced a sharp correction, dropping to $1.33 — the lowest point of the day — reflecting the combined effects of macroeconomic instability, escalating geopolitical tensions, risk-averse investor sentiment, and various other unfavorable factors.

Inflows into XRP slow down as Bitcoin and Ethereum experience capital outflows

According to the latest report from CoinShares, the inflow into XRP-related investment products last week was only $3.5 million, a 90% plunge from the $33 million recorded the previous week. Nonetheless, the total assets under management (AUM) of these products remain around $2.6 billion, with year-to-date (YTD) cumulative inflows reaching $151 million.

Cryptocurrency investment flows | Source: CoinShares Conversely, financial products linked to Bitcoin continue to face weak demand, with $215 million withdrawn during the past week. Despite a sharp sell-off that pushed the “king of cryptocurrencies” below $65,000 at one point, Bitcoin’s total AUM remains impressive at $104 billion. However, net capital outflows since the beginning of the year have reached approximately $1.3 billion.

CoinShares comments: “Bitcoin remains the main factor dragging market sentiment downward, with $215 million withdrawn from investment products. Conversely, short Bitcoin products attracted $5.5 million in inflows — the highest among digital assets.”

Ethereum also follows this negative trend, experiencing another week of net outflows totaling $36.5 million. Since the start of the year, capital withdrawn from Ethereum-related products has reached $494 million, while total AUM still exceeds $15 billion.

Notably, in the retail investor segment, the XRP derivatives market shows signs of stability. The open interest (OI) of XRP futures increased slightly to $2.4 billion on Tuesday, up from $2.33 billion the day before. Data from CoinGlass also confirms this trend, with OI remaining above $2.32 billion since bouncing back from a correction to $2.56 billion on February 16.

The steady increase in OI indicates that investors are willing to accept higher risks, reflecting improved confidence in XRP and opening up expectations for the token’s potential recovery in upcoming trading sessions.

XRP futures open interest data | Source: CoinGlass

Technical Outlook: Assessing XRP’s Recovery Potential

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