Cryptocurrency markets opened the European session on Tuesday with XRP trading at $1.0828 on Kraken, marking a 2.6% decline from its UTC opening level. The token briefly touched an intraday low of $1.0810, hovering near its weakest point in 24 hours.
XRP underperformed relative to other major digital assets in the same snapshot. Bitcoin slipped 1.1%, Ether declined 0.7%, and Solana fell 1.8%, making XRP the weakest among the four surveyed tokens.
The price weakness came despite a significant surge in trading activity. According to CoinGecko, 24-hour turnover for XRP reached $986.5 million, an increase of 98.5% compared to the previous day. The token's market capitalization stood at $67.9 billion.
Initial data from SoSoValue showed that net inflows into U.S. spot XRP ETFs over the past week amounted to just $8.15 million. This figure represents roughly 0.83% of a single day's token trading volume and approximately 0.012% of XRP's total market capitalization. While ETF demand remained positive, it was not the primary driver of Monday's spot market activity.
Over the past seven days, XRP dropped 2.7%, significantly underperforming the broader cryptocurrency market, which declined by only 0.4% over the same period, according to CoinGecko data.
Despite the price weakness, certain on-chain metrics indicated accumulation by larger holders. Data from Santiment, reported by CoinDesk, showed that wallets holding between 100,000 and 100 million XRP increased their balances by 2.8% over the past five weeks. In contrast, the smallest wallets reduced their holdings by 5.2% during the same period. However, this buildup has not translated into sustained price gains, with XRP slipping back toward Monday's low.
Market participants are now looking ahead to the Federal Reserve's July 28-29 policy meeting as the next major catalyst. The central bank is expected to keep its target rate unchanged at 3.5% to 3.75%, following a pause in June. The direction for risk assets, including cryptocurrencies, will likely depend on the Fed's communication regarding future policy, according to Nicolai Sondergaard, senior research analyst at Nansen.
XRP approaches the Fed meeting amid conflicting demand signals. While ETF inflows remain positive and larger wallets continue to accumulate, both the token's price and its relative performance against peers reflect subdued marginal demand. Any unexpected move by the Fed or a significant token transaction could sharply increase volatility.
Risks: Cryptocurrency prices vary by platform and are subject to constant fluctuation. ETF inflow and outflow figures may be revised. An unexpected Fed decision or major token transaction could sharply increase volatility.
