XRP's Price Divergence from Institutional Inflows Raises Bets on Bargain Entry

XRP's price has been declining for 350 days, shedding about 68% from its July peak near $3.65. However, despite this bearish trend, institutional investors are accumulating XRP in large quantities, with $1.43 billion in cumulative net inflows into XRP ETFs.

This divergence from the broader crypto market is attributed to growing conviction among large institutional allocators that the current price zone offers a bargain entry, especially given the upcoming regulatory catalyst in Washington. The CLARITY Act, which would classify XRP as a commodity under U.S. federal law, cleared the Senate Banking Committee in May and was placed on the Senate's legislative calendar on June 1.

Whale activity is also mirroring the ETF trend, with long-term holders expanding their positions by 22% during the final days of May, suggesting that sophisticated players are treating the drawdown as a buying opportunity. The technical picture remains strained, but if the CLARITY Act passes, Standard Chartered sees a near-term target of $2.80.