XRP is trading around $1.04 as of Sunday evening in London, following an 8.6% decline over the past week. The digital asset has been under pressure, with its price dipping to a low of $1.0095 on June 26 before recovering slightly. Despite the pullback, the derivatives market for XRP remains robust, with futures open interest hitting $2.37 billion, which is approximately 1.6 times the total inflows into U.S. spot XRP ETFs since their launch.
Derivatives Dominate Trading Activity
Data from CoinGlass shows that XRP futures turnover in the last 24 hours reached $1.29 billion, roughly 6.8 times the spot volume of $190.7 million. This disparity highlights that derivatives, rather than spot ETF flows, are currently the primary driver of XRP's price action. The open interest of $2.37 billion dwarfs the $15.63 million inflow into U.S. spot XRP funds on Friday, which brought total ETF inflows to $1.47 billion, according to The Block, citing SoSoValue.
Market Context and Price Levels
XRP's price has been oscillating within a tight range, with intraday lows of $1.042 and highs of $1.056 on Sunday. The broader crypto market also saw declines, with bitcoin trading near $59,453, ether around $1,568, and solana at $70.92. XRP's market capitalization stands at approximately $65.05 billion, based on a circulating supply of nearly 62 billion tokens, according to CoinGecko.
The weekly performance of XRP was notably weaker than the broader crypto market, which fell 5.7% over the same period. XRP's decline accelerated after June 22, when it was trading at $1.1295. Volume spiked on June 26, reaching 511.62 million tokens as the price tested the $1 support level before bouncing back.
ETF Flows and Leverage Concerns
While U.S. spot XRP ETFs saw a modest inflow of $15.63 million on Friday, the overall trend for crypto ETFs has been mixed. U.S. spot bitcoin ETFs experienced significant outflows of about $1.79 billion for the week ending June 26, marking their second-largest weekly withdrawal since inception. In contrast, XRP funds have accumulated total inflows of $1.47 billion.
Ripple CEO Brad Garlinghouse has warned about the risks of excessive leverage in the market. In a recent CNBC interview, Garlinghouse stated that "financial engineering does not drive long-term value" and criticized Strategy (NASDAQ:MSTR) for its leveraged bitcoin holdings, noting that its STRC preferred shares are trading around 25% below par. Strategy co-founder Michael Saylor responded on X, saying, "Volatility tests every capital structure."
Legal and Technical Outlook
XRP holders continue to grapple with legal uncertainties, even after the SEC case against Ripple concluded. In August 2025, a final judgment imposed a $125.035 million civil penalty on Ripple and an injunction related to registration rules, following the dropping of cross-appeals.
From a technical perspective, traders are watching the June 26 low of $1.0095 and the $1.05-$1.07 area, which previously acted as support. A break below this zone could open the door for a retest of the $1 level, while a recovery above $1.10 would suggest the recent decline was a shakeout.
