Ripple XRP Plummets 17% as Spot ETFs Bleed $18M
Key Summary
Ripple lost its fifth position in market capitalization to USDC after shedding 17% to hit $1.06. CoinMarketCap data and fund disclosures reveal that spot XRP exchange-traded funds suffered over $18M in net outflows across two consecutive sessions, while long liquidations accelerated the sharp correction.
Key Bullets
- Ripple tumbled 17% to $1.06 while weekly bitcoin declines stood at just 5% across major spot venues.
- Spot XRP exchange-traded funds recorded $10.42M in single-day outflows on Monday, marking the largest withdrawal since May 9.
- Cumulative net inflows for the financial vehicle retreated from ATH marks of $1.81B down to $1.79B.
- Technical analysis from market monitors isolated $1.00 as the critical defense line required to prevent deeper liquidations.
XRP Surrenders Market Position to USDC
Ripple shed 17% of its market value to trade at $1.06 Tuesday morning after touching an intraday low of $1.03 during the previous session, according to CoinMarketCap price feeds. This sharp correction outpaced the broader digital asset sell-off. Bitcoin retreated by just over 5% from weekly highs above $81,000 down to $73,000. Ethereum and Solana posted losses nearing 10%.
The extended sell-off forced XRP out of the top five digital assets by market capitalization, yielding the position to the USDC stablecoin. Long liquidations across derivatives exchanges accelerated the downside momentum as leveraged positions unwound.
Spot ETF Outflows Reach Multi-Month Highs
Financial products tied to the token suffered mounting redemptions as institutional demand dried up across four of the past five trading sessions. Data compiled by fund issuers shows that spot XRP exchange-traded funds recorded $10.42M in net outflows on Monday.
Another $7.62M left the vehicle on Tuesday. These consecutive withdrawals pushed the two-day total past $18M and compressed cumulative net inflows from $1.81B down to $1.79B.
Traders Watch Critical Support Zones
Market participants identified $1.00 as the crucial price floor necessary to stabilize the asset and halt further long liquidations. Exchange order books indicate that early holders initiated profit-taking rotations, compounding the downside pressure generated by algorithmic margin calls.
If the token defends the $1.00 price floor, traders eye a recovery trajectory toward the $1.15 resistance cluster. Sustained volume will dictate whether the asset reclaims its previous footing.
Institutional Inflows and Supply Dynamics Across XRP Investment Vehicles
Today's market correction follows an established trajectory that began in late October 2026, when spot XRP exchange-traded funds registered $8.43M in net inflows on October 29 following a price breach of $1.25. During that previous period, combined institutional ETF holdings accounted for up to 1.87% of circulating supply, while global ETP assets under management reached $3.32B. Analyst commentary from Standard Chartered on November 5, 2026, highlighted long-term supply metrics, noting that spot vehicles had previously secured 1.2 billion tokens while Ripple maintained 31.7 billion tokens locked in escrow alongside corporate reserves totaling 36.8 billion XRP.
Impact score:4 out of 5 | Narrative Tracker:Expanding ETF & ETP Access
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