XRP Price Stagnant Amid Correlation with Bitcoin and Weak Institutional Support

The cryptocurrency market has been witnessing a stagnant XRP price, hovering between $1.35-$1.40 despite its solid fundamentals. This phenomenon can be attributed to three primary factors: XRP's correlation with Bitcoin, underwater XRP holders selling into every rally, and weak inflows from XRP ETFs.

XRP has a strong correlation with Bitcoin, tracking it approximately 80% of the time. When Bitcoin falls, XRP follows suit, swinging around 1.8 times more in either direction. As Bitcoin has been stuck between $65,000 and $75,000 since February, XRP's price remains stagnant due to its inability to break free from this correlation.

Furthermore, a significant portion of XRP's circulating supply is held at a loss, with 60% of it being underwater. This has created resistance walls at $1.44, $1.58, and $1.76, which stop every rally attempt. Every time the price pushes towards these levels, holders who have been sitting on losses for weeks or months sell to break even and get out.

The XRP ETFs, launched in November 2025, initially recorded positive inflows but have since collapsed to under $2 million per week. The funds posted net outflows of $28 million the same week Bitcoin ETFs pulled in $767 million. With only 15.9% institutional participation, the XRP ETFs are not creating meaningful supply pressure that could move the XRP price.