XRP is trading near a critical support zone of $1.31 to $1.38 following a 20% decline from its August high of $1.70. Analyst Ali Martinez identifies this range as the key level determining whether a move toward $2 remains viable.

Despite the price correction, institutional interest appears resilient. U.S. spot XRP exchange-traded funds recorded their 11th consecutive session of net inflows on Tuesday. The funds pulled in $14.38 million for the day, adding to a streak that began on August 18 and has accumulated roughly $170 million.

ETF Flow Dynamics

Cumulative net inflows into U.S. spot XRP ETFs since launch stand at $1.68 billion. Total net assets across these funds are currently valued at $1.44 billion.

Franklin Templeton’s XRPZ led Tuesday’s activity with $6.63 million in inflows. Grayscale’s GXRP followed with $4.72 million, while Canary’s XRPC added $3.03 million. Major institutional holders identified in Q2 13F filings include Goldman Sachs, Jane Street, and Millennium Management.

Technical Structure and Key Levels

Martinez notes that more than 4.8 billion XRP were previously acquired between $1.31 and $1.38, establishing this as a heavy demand zone. On the hourly timeframe, the asset is forming a bullish flag pattern with support at this same zone. An hourly close above $1.38 would confirm a breakout and place $2 back in focus.

The path upward faces stacked resistance levels based on previous trading volumes:

If the $1.31 support breaks, the next cushion lies within the Bull Market Support Band at $1.24 to $1.28. XRP is currently compressing into the apex of a descending triangle at $1.32, with the flat support near $1.30 and the 20-day EMA at $1.31 being tested simultaneously.

What the Numbers Show

The divergence between persistent capital inflows and price weakness is notable. While U.S. spot ETFs have logged $170 million in net inflows over the last 11 sessions, the underlying asset has fallen 20% from its peak. Martinez characterizes this continued buying during a pullback as a constructive sign for the technical setup, suggesting that institutional accumulation has not yet fully translated into price strength.

DAG Wealth has launched the Parataxis Systematic Trading Strategy, enabling eligible clients to pursue returns on XRP holdings without selling the underlying asset. The initiative introduces a tri-party structure involving Parataxis Capital Management and Anchorage Digital.

The strategy allows XRP to remain in the client’s name at a qualified custodian while serving as collateral. A third-party manager trades on the client’s behalf, with profits or losses settling directly to the client’s account.

Structural Mechanics

Louis Hsu, Chief Investment Officer at DAG Wealth, described the setup as an institutional framework that leverages Anchorage’s custody infrastructure and Parataxis’s track record in trading large-cap, liquid tokens. This arrangement permits long-term XRP assets to be utilized for potential yield generation without requiring clients to give up custody.

Eligibility and Risk Profile

Access to the Parataxis Systematic Trading Strategy is restricted to eligible DAG Wealth clients following a suitability review conducted with their advisor. The determination of appropriateness depends on individual investment objectives, financial circumstances, and risk tolerance.

Investing in digital assets involves substantial risks, including extreme price volatility, potential total loss of principal, cybersecurity threats, regulatory uncertainty, and illiquidity. Past performance is not indicative of future results, and such strategies may not be suitable for all investors.