XRP has made a powerful comeback this week, climbing nearly 50% as investors returned to spot XRP ETFs and speculation around the token’s potential role in institutional payment infrastructure fueled renewed market interest.
After weeks of relatively weak demand, U.S. spot XRP ETFs recorded their strongest weekly performance since May, attracting approximately $39.8 million in net inflows across four consecutive trading sessions.
The renewed institutional demand came as XRP finally caught up with the broader cryptocurrency market, pushing the token from around the $1.00 area to as high as $1.70 before traders began taking profits.
XRP ETFs Record Best Week Since May
The recent improvement in ETF demand marks a significant change from the first half of August.
Investors initially showed little interest in XRP exchange-traded funds, with seven of the first 11 trading sessions of the month recording no net inflows. That trend changed on August 18, when the products attracted $5.81 million.
Daily inflows then accelerated:
- August 18: $5.81 million
- August 19: $2.35 million
- August 20: $13.24 million
- August 21: $18.38 million
The four-day streak brought weekly inflows to roughly $39.8 million, making it the strongest week for spot XRP ETFs since mid-May.
Cumulative ETF inflows have now reached approximately $1.55 billion, while total net assets across the products have risen to around $1.33 billion.
Bitwise’s XRP ETF remains the largest contributor, with approximately $542.7 million in cumulative inflows. Canary Capital’s XRPC follows with about $468.1 million, while Franklin Templeton’s XRPZ has attracted roughly $434.2 million.
The figures suggest that institutional interest in XRP has not disappeared despite the token’s prolonged period of relatively weak price performance.
XRP Finally Catches Up With the Crypto Market
Interestingly, XRP initially lagged behind Bitcoin and Ethereum when the broader crypto market began recovering.
The move accelerated later in the week, however, and XRP eventually posted one of its strongest rallies in months.
After defending the $1.00 level, XRP climbed roughly 70% in less than three days, briefly reaching around $1.70. The sharp move was followed by a correction toward $1.42 as traders locked in profits.
XRP subsequently recovered part of those losses and was trading around the $1.45-$1.50 area, leaving it significantly above the level where the week began.
The rally has also coincided with stronger activity on the XRP Ledger. Network transaction activity reportedly climbed to approximately 3.2 million transactions, marking the highest level in roughly four months.
That combination of rising market demand, ETF inflows and increased network activity has helped strengthen the bullish narrative surrounding XRP.
FedNow Speculation Adds Another Catalyst
Another factor attracting attention is speculation surrounding XRP’s potential integration into institutional payment infrastructure.
Payment technology company Volante Technologies provides infrastructure that allows financial institutions to connect to different payment networks, including FedNow, RTP, Fedwire and SWIFT.
Recent online speculation suggested that Volante’s integration with Ripple could potentially allow XRP to be used alongside infrastructure supporting instant payments.
However, there is an important distinction here: there is currently no official confirmation from the U.S. Federal Reserve that XRP has been integrated directly into FedNow.
The fact that XRP and FedNow may appear as options within payment infrastructure provided by the same technology provider does not, by itself, establish a direct connection between XRP and the Federal Reserve’s FedNow service.
Nevertheless, the speculation has generated significant attention among XRP investors, particularly because broader institutional adoption has long been one of the central narratives surrounding the token.
XRP Price Faces a Key Test at $1.40
Despite the strong weekly rally, XRP’s short-term momentum has started to cool.
On the four-hour chart, the $1.40 level has become an important support zone. Holding above this area could allow buyers to attempt another move toward $1.50 and eventually retest the $1.60-$1.70 resistance region.
Technical momentum is showing some signs of moderation. The Relative Strength Index has fallen back toward 59 after previously reaching overbought conditions, while the MACD has produced a bearish crossover, suggesting that short-term selling pressure is increasing.
If XRP manages to reclaim and hold above $1.50, the next major resistance areas could be around $1.60, followed by $1.70 and potentially $1.80.
On the other hand, losing $1.40 could expose the token to a deeper correction toward $1.30, with the $1.20 region representing another important support area.
What Comes Next for XRP?
XRP’s recent move is significant because it combines several factors that had been missing during its previous period of consolidation.
ETF inflows have returned, spot demand has strengthened, network activity has increased and institutional-payment narratives are once again attracting attention.
The key question now is whether this momentum can continue after such a rapid rally.
A sustained flow of capital into spot XRP ETFs could provide an important source of demand, but traders will also need to watch whether XRP can hold the $1.40-$1.50 region after the initial wave of profit-taking.
For now, the ETF data points to a clear shift in investor interest, while the price action suggests that XRP has entered a much more important phase of its market cycle.
If buyers can defend the recent support levels and push XRP back above $1.60, the $1.70-$1.80 area could become the next major target. A break below $1.40, however, would weaken the current bullish setup and increase the risk of a deeper correction.