XRP has declined more than 5% over the past 24 hours to trade at $1.40, extending a pullback that stands in stark contrast to improving metrics across several key market indicators. This price action leaves traders evaluating whether recent accumulation signals can overcome short-term selling pressure after the asset briefly breached $1.54 for the first time in two months. The disconnect is clearly visible across three distinct areas: ETF flows, exchange withdrawals, and XRP Ledger (XRPL) activity. Collectively, these data points indicate rising interest in the asset even as spot-market momentum remains fragile. Woofun AI reports that this divergence highlights a critical tension between institutional allocation and immediate retail sentiment.

Data compiled by Woofun AI shows the four XRP funds attracted $60 million in net inflows this week, marking the highest weekly total of 2026. The last comparable reading occurred in the final week of the previous year when the products pulled in $64 million. This latest inflow streak commenced with $25.8 million on Monday, representing the largest single-day intake in more than four months. The funds subsequently added $5 million on Tuesday, recorded no flows on Wednesday, absorbed $18 million on Thursday, and closed the week with another $10 million on Friday. These fresh demands have lifted cumulative inflows into XRP funds to $1.39 billion, while total net assets currently stand at $1.18 billion.

This flow profile suggests institutional buyers are continuing to allocate capital to XRP despite the token's weak daily performance.

However, the data also indicates that ETF demand has not yet been sufficient to reverse pressure in the spot market. Beyond Wall Street products, large-scale crypto investors are actively moving their assets into private custody, adding another bullish signal to the broader market narrative. These withdrawals have occurred on an almost daily basis, creating a pattern that is more sustained than the isolated spikes recorded earlier this year.

Earlier behavior suggested large holders were moving coins away from exchanges primarily during periods of price weakness. The latest pattern has shifted to Binance, with withdrawals continuing as XRP attempted to recover toward $1.47 this week. While the effect is not automatic, persistent withdrawals can tighten exchange-side liquidity if the trend continues. Woofun AI notes that this sustained off-exchange movement signals a long-term holding strategy among major stakeholders, potentially reducing immediate sell-side pressure.

Santiment data show XRPL recently recorded its highest level of on-chain activity since late March after XRP climbed above $1.54. Active addresses reached 48,453 over a 24-hour period, the highest level since March 30. Network growth also accelerated, with 3,317 new addresses created. That marked the strongest pace of new wallet creation since March 19. While some of the on-chain spikes can be attributed to retail traders chasing the brief price bump, sustained transactional activity and address growth provide a fundamental baseline for network valuation.

The next phase of market movement will depend on whether the current signals persist. Traders will be watching whether XRP ETFs continue to attract inflows, whether Binance withdrawals remain steady, and whether XRPL activity holds up after the initial price-driven burst. Woofun AI analysis suggests that a slowdown in flows, exchange withdrawals, or network activity would weaken this setup and leave the token more exposed to further consolidation. The market remains in a delicate balancing act where fundamental strength must eventually translate into price appreciation.