XRP experienced a notable decline over the weekend, sliding to approximately $1.31 on Saturday, marking a 3.9% drop in the past 24 hours and a 7.4% decline over the last seven days, according to data from CoinMarketCap. The Ripple-linked token's market capitalization now stands near $81 billion, with trading volume reaching $2.16 billion. This performance lags behind the broader cryptocurrency market, which saw a 4.1% decline over the same weekly period, as reported by CoinGecko.
Market Context and Holiday Schedule
The pullback comes as U.S. financial markets prepare for a holiday-shortened week. The New York Stock Exchange will be closed on Monday, May 25, in observance of Memorial Day, meaning U.S. equities and listed crypto-linked products will not trade until Tuesday. However, spot cryptocurrency trading continues uninterrupted. The shortened trading schedule could amplify price movements due to thinner liquidity.
ETF Inflows and Investor Sentiment
Despite the price weakness, XRP stood out in terms of fund flows. According to CoinShares, digital-asset investment products saw net outflows of $1.07 billion in the week ending May 15, with Bitcoin funds losing $982 million and Ethereum funds shedding $249 million. In contrast, XRP products attracted $67.6 million in inflows, while Solana added $55.1 million. James Butterfill, head of research at CoinShares, noted that "altcoins held up notably well" as investors were "looking past Bitcoin and Ethereum for selective exposure."
Technical Analysis and Support Levels
From a technical perspective, XRP's price action remains fragile. FXStreet markets analyst John Isige observed on Friday that "XRP remains below major averages," with some pressure building around the $1.35 support level, where buyers have historically stepped in. Isige added that if XRP breaks below that level, traders are eyeing $1.30 as the next potential demand zone. He also commented that exchange-traded funds have not yet been sufficient to improve the short-term outlook.
Regulatory Developments
On the regulatory front, the U.S. Senate Banking Committee advanced the Clarity Act last week, a bill aimed at defining whether crypto tokens are securities, commodities, or something else. Miller Whitehouse-Levine, CEO of the Solana Policy Institute, told Reuters, "It's taken years of work to get to this point." Additionally, the U.S. Securities and Exchange Commission concluded its case against Ripple Labs in August 2025, imposing a $125 million fine and an injunction on institutional XRP sales. Ripple Chief Legal Officer Stuart Alderoty described this as "the end" of the case.
Macroeconomic Headwinds
Broader macroeconomic factors also weighed on risk assets. U.S. consumer sentiment fell to an all-time low in May, driven by rising inflation fears and cost-of-living concerns, according to Reuters. This has given traders additional reason to remain cautious ahead of the long weekend. The Personal Consumption Expenditures price index, a key inflation gauge watched by the Federal Reserve, is scheduled for release on May 28, according to the Bureau of Economic Analysis.
Outlook and Key Levels
Looking ahead, the near-term test for XRP is at the $1.30 support level. If the token holds above this level, continued ETF inflows could sustain its position in the market rotation. However, if it breaks below, the weekend's decline may signal a broader market still selling into strength rather than an isolated move. Traders should also monitor inflation data, as a hot reading could shift focus back to interest rates, the U.S. dollar, and risk appetite, potentially disrupting the current flow dynamics.
