XRP ETF Demand Stays Strong Amid Fed-Induced Price Challenges

In the latest updates regarding XRP, Ripple experienced a dip of about 2% on Monday, kicking off the week with XRP USD trading around $1.36. The significance of this timing outweighs the price itself.

This drop followed remarks from Federal Reserve Chair Warsh, emphasizing a strict adherence to the 2% inflation goal. The article notes this statement increased the likelihood of a rate hike in September from 35% to 57%.

During the same trading session, Bitcoin fell below $78,000, with Ethereum and BNB also experiencing declines. However, all three digital currencies have made slight recoveries since their lowest points.

Despite the Federal Reserve’s more aggressive stance pushing risk assets down, XRP ETFs in the US saw inflows of $110.49 million for the week ending August 28, marking the strongest week since December 2025.

XRP Update: Positive ETF Flows Amid Market Decline

(SOURCE: CoinGlass)

According to CoinGlass, the spot XRP ETFs witnessed inflows totaling $110.49 million for the week ending August 28, their most robust weekly performance since December 2025.

The data also suggests that there have been no net outflows for these funds during the last three weeks, even in the face of declining XRP prices. This divergence is crucial to understanding the current dynamics.

Currently, ETF inflow data and recent price movements appear to tell differing narratives. A recent analysis of XRP whale activity compared to ETF inflows highlights a similar disconnect between fund interest and spot-market pressures.

Analyzing September’s Market Influences

In August, XRP experienced its best monthly performance since July 2025, rising approximately 31% despite a recent correction, maintaining a positive gain of 26% over the last month. XRP jumped from $0.988 to $1.698, a remarkable increase of 71.8%, before retracting about 20%. This volatility can expose the token to broader economic shocks, such as recent Federal Reserve actions.

On the ETF side, August saw cumulative inflows reach $153.54 million, increasing total net assets to $1.66 billion. Bitwise led the charge with around $600 million in inflows, followed closely by Franklin Templeton’s XRPZ product and contributions from Canary.

Corporate developments are also important to note. Ripple’s CEO Brad Garlinghouse shared at the SALT Conference that he expects revenue to more than double in 2026, spurred by institutional partnerships connected to the RLUSD stablecoin.

Ripple reported processing around $16 trillion in transaction volume over the past year and recently launched a delta-one trading desk via Ripple Prime, appointing Joseph Thompson to lead its tokenization strategy.

The Value of XRP’s Ecosystem at Scale

(SOURCE: DefiLlama)

Beyond pricing fluctuations, the XRP Ledger is steadily evolving into a comprehensive settlement layer for multiple assets. RLUSD has exceeded $1 billion in circulation on this platform.

Currently, the network supports various stablecoins, such as USDB from Braza Bank, EURCV from Société Générale, USDC from Circle, and EUROP from Schuman Financial, according to the report.

This ongoing infrastructure expansion is distinct from the daily price movements of XRP and merits separate observation regardless of future Federal Reserve actions (although Kalshi bettors are currently anticipating ‘no changes’).

For a broader understanding of how monetary policy influences crypto sentiment, it’s worthwhile to examine this analysis of Fed Chair Warsh’s impact on the Bitcoin market.

XRP Update: Price Scenarios – Bullish, Neutral, and Bearish Outlooks

In other updates regarding XRP, the technical outlook has taken a significant hit this week. Analyst Ali Martinez had previously identified a support range between $1.35 and $1.38, where about 3.2 billion XRP tokens were traded. This report confirms that the price has dipped below that range, undermining the short-term stability.

• Optimistic Scenario: Martinez’s confirmed breakout above a descending trendline retains the possibility of reaching $1.70, with resistance levels noted at $1.60, $1.68, and $1.86. A decisive close over these thresholds could pave the way to $2.19, although this remains speculative.

• Neutral Scenario: XRP could fluctuate between the newly breached support zone and imminent resistance, as ETF inflows and Fed-induced selling counterbalance each other, with traders monitoring whether the $1.35–$1.38 range can be reclaimed.

• Pessimistic Scenario: Continued trading under $1.35 would jeopardize the breakout structure and could delay any movement towards the $1.70 to $2.19 range that Martinez has indicated.

Two significant events are anticipated before the end of September. The article mentions that the Senate is set to vote on the CLARITY Act on September 15 after a 15-9 vote in the Banking Committee supported its advancement. Additionally, a one-billion XRP escrow release is expected on September 1.

This release is valued at approximately $1 billion and is projected to see between 600 to 800 million tokens re-locked based on historical norms, resulting in a net increase of 200 to 400 million XRP in circulation. For an in-depth analysis of how these inflows interact with price targets, the XRP price prediction piece concerning ETF inflows is a worthwhile read.

EXPLORE: Top Crypto Presales Offering Strong Potential in Today’s Market

Stay Updated with 99Bitcoins on X for the Latest Market News and Subscribe on YouTube for Expert Daily Market Insights.Read original article XRP ETF Demand Remains Strong Despite Fed Pressure Affecting XRP Price Support by Alex Ioannou at 99bitcoins.com