XRP surges 31% in a week as spot ETF inflows hit $1.57 billion

XRP ETF inflows and market sentiment

Spot XRP exchange-traded funds (ETFs) attracted $1.57 billion in inflows this week, according to data from Traders Union. On August 20, 2026, ETFs registered a daily inflow of $125 million, the lowest single-day gain of the week, while subsequent days saw stronger investments. These substantial inflows have contributed to the positive sentiment surrounding XRP’s recent rally.

XRP stands as the native digital asset of Ripple, a blockchain-based payment protocol designed to facilitate fast and low-cost international money transfers for financial institutions worldwide.

Mini dictionary: Spot ETF, an exchange-traded fund that tracks the price of a physical asset, such as a cryptocurrency like XRP, rather than futures contracts. Spot ETFs allow investors to gain direct exposure to price movements with higher transparency and without the need to hold the asset directly.

XRP found support at $1.40 after a sharp rally, while ETFs saw $1.57 billion in inflows this week.

However, some traders remain cautious due to XRP’s history of reversing gains following rapid rallies. Entering the market after such a sharp uptick is viewed as a higher-risk move.

Bitcoin’s role and wider crypto market trends

The sustained performance of Bitcoin, which is maintaining the $78,000 level, has provided crucial support for the broader cryptocurrency market. There are industry reports that the White House has expressed interest in acquiring a significant amount of Bitcoin, a factor that is also fueling cautious optimism among investors.

Market participants indicate that Bitcoin’s stability is an important anchor for other leading altcoins such as XRP. The continuing bullish sentiment could present opportunities for retail traders if the trend extends further.

Technical outlook and downside risk

XRP’s technical indicators show the altcoin trading above its 20-day moving average (MA-20) and the longer-term 200-day moving average (MA-200), while it remains below the 50-day moving average (MA-50). Analysts suggest that this positioning represents underlying strength, reducing the likelihood of a significant downturn in the short term.

Traders Union has identified $1.30 as a key downside target if selling pressure increases, but assigned a 55% probability of XRP rallying further instead. The outlook for XRP appears optimistic, with several fintech companies and analysts maintaining a constructive stance on the asset’s trajectory.

With the broader cryptocurrency market rebounding in August after a muted year, further gains in XRP could drive a new wave of bullish sentiment and increased participation from individual investors.