Is XRP’s undervaluation finally catching up with institutional interest?
Technically, XRP was one of the hardest hit high-cap assets after the Binance hack. It lost over 6.5% of its value and fell below the key $1.25-support level. What’s more, the breakdown dragged XRP back to levels seen during mid-August, leaving STHs underwater and raising the chance of further downside.
From an institutional standpoint, however, the chart below illustrates that Spot XRP ETFs had the best single-day performance since 25th September, seeing net inflows of $8.43 million on 29th October.
This puts them on course to exceed last week’s inflows, while their combined holdings now account for 1.87% of XRP’s circulating supply.
In essence, a divergence is taking shape between weakening technicals and rising institutional interest.
Usually, a setup like this raises one key question: Are institutions positioning ahead of a catalyst that the broader market hasn’t priced in yet? October has certainly been a big month for XRP. BNY has included XRP in corporate payments, Standard Chartered has launched XRP custody, Ripple has secured final U.S approval for Ripple Bank, and Coinbase launched support for RLUSD.
Given that institutional positioning is now beginning to catch up with these developments, could this breakdown in XRP be a classic rebound scenario? In turn, providing it with the momentum to break away from the overall market FUD ahead of November?
XRP’s Q3 playbook returns as institutional flows pick up
A recent report from Blockworks couldn’t have come at a better time.
XRP had a solid run in Q3 2026. The stablecoin supply on XRPL increased by 25.2% to $1.03 billion, while global XRP ETPs saw net inflows jump by 39.6% to $355.3 million, bringing the total AUM to $3.32 billion. On the network side, payment volume increased by 4.3%. Meanwhile, distributed tokenized RWA value grew by 29.2% to $498.7 million, with Aviva also launching a tokenized fund in partnership with BNY Mellon.
In essence, institutional flows played a major role in driving XRP’s 43% rally during Q3. Now, with Q4 already off to a strong start on the fundamentals front, the pickup in institutional demand could be an early sign of another potential Q3-style rally.
This puts XRP’s recent drop below $1.25 in a different light.
The breakdown may not be necessarily bearish as it seems like institutional money is getting positioned before the market could start to recover. If this trend continues, XRP could be gearing up for another major rally despite broader market weakness.
Final Summary
- XRP may be facing short-term price pressure despite rising institutional interest.
- Strong fundamentals and ETF inflows could fuel another rally in November.
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