XRP spot exchange-traded funds recorded $153 million in inflows during August, marking the strongest monthly performance since their inception last November. This surge in institutional demand occurred while the token’s price retreated to $1.3955 from a monthly high of $1.6930.

The divergence between rising fund assets and falling spot prices highlights shifting market dynamics for the asset. Third-party data from SoSoValue indicates that spot XRP ETFs added $26.2 million on Friday alone, bringing weekly gains to $110 million. Since launching in November of the previous year, these funds have accumulated a cumulative $1.66 billion in inflows and currently hold $1.4 billion in assets under management.

Institutional Accumulation Trends

August’s inflow figure represents the best monthly performance this year, surpassing the previous record set in May when funds attracted $131 million. The only month of outflows since inception was March, which saw a loss of $31 million in assets. Bitwise’s XRP ETF leads the category in terms of total assets managed.

Ripple USD and Technical Levels

Ripple’s stablecoin, RLUSD, launched in late 2024, has crossed $2.32 billion in total assets. The portion issued directly on the XRP Ledger exceeded $1 billion this week. Ripple Prime recently introduced Delta One, offering total return swaps across US-listed equities, indices, and digital assets to clients.

Technically, XRP remains supported by the 50-day moving average and holds slightly above the 50% Fibonacci retracement level at $1.3430. The recent price action mirrors broader crypto market weakness following hawkish remarks by Fed Chair Kevin Warsh at the Jackson Hole Symposium.

What the Numbers Show

The data reveals a clear decoupling between institutional accumulation via ETFs and retail-driven spot price movements. While spot prices fell nearly 18% from the monthly high, institutional investors added significant capital, suggesting long-term positioning rather than short-term speculation.

XRP (CRYPTO: XRP) price reached $1.6963, its highest level since January last year, driven by a broader crypto market rally, significant institutional inflows, and rising derivatives leverage.

The token surged from a year-to-date low of $0.9870. This sharp appreciation coincided with the Crypto Fear and Greed Index jumping to 73, entering the greed zone and signaling strong risk-on sentiment among investors.

ETF Inflows and Whale Activity

Institutional interest in XRP has intensified, with exchange-traded funds attracting substantial capital. On Friday alone, XRP ETFs saw inflows exceeding $18 million.

Weekly inflows totaled $40 million, marking the largest weekly increase since May. Bitwise and Franklin Templeton led this activity:

Simultaneously, large holders, or "whales," have been accumulating tokens. Over 240 million XRP tokens have left exchanges since the start of summer, reducing supply available for trading.

Rising Leverage and Technical Targets

Derivatives traders are simultaneously increasing risk exposure. CryptoQuant data shows XRP’s estimated leverage ratio on Binance has climbed to around 0.213, its highest level in more than seven months. This rise follows a period where the ratio remained comparatively subdued through most of 2026, indicating returning speculative activity.

Market commentator Dark Defender identified $1.8815 as the next major test for XRP. He noted that the token rebounded 41.69% from its low to as high as $1.6995. A break above $1.88 could shift focus toward the $5.8563 Fibonacci extension, with long-term targets between $5.85 and $9.

Defender maintains that $0.9327 remains the critical Fibonacci support. Only a monthly close below this level would invalidate the bullish Elliott Wave structure, which traces back to 2023.

Technical Indicators Signal Overbought Conditions

Despite the bullish momentum, technical indicators suggest the asset is stretched. The daily Relative Strength Index (RSI) hit 85.4, its highest level since July last year.

The price broke above the 50-day Exponential Moving Average (EMA), confirming short-term bullish control. However, chart patterns indicate potential reversal risks:

• The RSI level of 85.4 denotes an extremely overbought market condition.
• Candlestick patterns resembling a doji or shooting star may signal a bearish reversal.
• Support levels are identified at $1.1580, the token's highest point in July.

Higher leverage can cut both ways. Rising leverage could strengthen XRP’s rally if accompanied by higher prices and open interest. However, if XRP reverses while leverage remains elevated, forced liquidations could amplify the downside.

What the Numbers Show

The divergence between rising institutional demand and falling exchange reserves highlights a shift in holding behavior. While ETF assets under management grew to over $875 million combined for Bitwise and Franklin, the removal of 240 million tokens from exchanges suggests long-term accumulation rather than speculative trading. This structural supply reduction supports the price rally despite the technically overbought RSI reading and elevated leverage ratios.