XRP traded near $1.33 on May 31 as traders watched whether fresh exchange outflows, ETF demand and a key chart support area could help the token recover from recent weakness.
Exchange Inflow Reversal: Retail Capitulation Maybe Over
Santiment data showed XRP recorded its largest exchange inflow of the year on Thursday, with 22.80 million XRP moving onto trading platforms. Large inflows often signal selling pressure. However, the move quickly reversed: Santiment reported 25.24 million XRP moved back off exchanges after the inflow, reducing the amount available for immediate sale.
Santiment noted the large inflow occurred near XRP's local price bottom, and retail traders who sold during the capitulation likely regretted it as XRP gained about 5% from that point. The data does not confirm a full trend change, but the reversal gives traders a fresh signal to monitor.
Price Hovers at $1.33; Key Support at $1.34
At press time, XRP traded at $1.33, down 0.36% in 24 hours and 2.06% over the past week. 24-hour volume stood at $1.09 billion. The narrow range between $1.33 and $1.35 reflects tight competition between buyers and sellers. XRP remains the fifth-largest crypto asset by market cap ($82.7 billion), with a fully diluted valuation near $133.4 billion.
The broader trend remains weak: XRP is down 3.13% over the past month, 37.47% over the past year, and over 44% in the past 200 days. Analyst Ali Martinez identified $1.34 as the bottom of a rising channel and a potential buying zone. If this level holds, next targets are $1.37 and $1.40. A clean break below $1.34 weakens the rebound case, while a close above $1.40 shows buyers regaining control.
ETF Inflows Continue; Morgan Stanley Discloses Holdings
XRP ETFs recorded $131.94 million in net inflows this month. As previously reported by crypto.news, Morgan Stanley disclosed holdings in two XRP-focused ETFs: 1,700 shares of the Volatility Shares XRP ETF and 100 shares of the Grayscale XRP ETF in a first-quarter filing. Although small relative to Morgan Stanley's total portfolio, the filing shows institutional exposure through regulated products.
Earlier reports indicated XRP investment products attracted $85.8 million over three weeks, while Bitcoin and Ethereum funds saw large net outflows. This contrast gives XRP a stronger institutional angle, though ETF inflows alone do not guarantee a price rally — open market demand and a clean breakout above resistance are still needed.
XRPFi Narrative Expands: Collateral and Yield Strategies
XRP's use case is extending beyond payments. RippleX recently discussed using XRP as collateral for yield: wrapping XRP as FXRP on Flare, borrowing stablecoins, and deploying assets into protocols. These tools aim to turn idle XRP into productive capital, but come with smart contract, liquidity, and market risks.
Long-term, XRP/BTC remains in an eight-year downtrend channel. Some argue a breakout could start a new cycle, but that remains speculative. For now, XRP's path depends on three levels: $1.34 support must hold; $1.37 is the first recovery target; $1.40 is the major near-term test. If exchange outflows persist and ETF demand stays positive, a short-term rebound is possible. If $1.34 fails, traders will shift focus to lower supports.