US-listed XRP exchange-traded funds (ETFs) drew $34.21 million in net inflows in the week ending May 8, coinciding with a more than 6% rise in XRP’s spot price.
What Made XRP ETFs Attractive Last Week?
The inflows came as risk assets recovered, supported by strong US earnings and easing macro pressure. US stocks rallied to their record highs. Bitcoin ETFs attracted $623 million in the same period. Ethereum and Solana ETFs also recorded notable inflows.
SoSoValue said traders began attracting “higher-beta exposure” as risk sentiment improved.
“What matters next is whether this layered rotation continues,” the on-chain data platform wrote, adding:
“If BTC flows keep cooling while SOL and XRP continue to attract capital, the market may be rotating further out the risk curve. But if BTC re-accelerates and ETH flows broaden beyond ETHA alone, then this week may look more like a healthy sentiment reset than a true style shift.”
A “Small Altcoin Season” is Happenning But Beware
For Joao Wedson, founder and CEO of on-chain data resource Alphractal, XRP’s demand is part of a “small altcoin season,” given that some cryptocurrencies other than Bitcoin have performed exceptionally well in the past weeks. They include privacy coins like Zcash (ZEC) and Dash (DASH), as well as layer-one assets like Sui (SUI) and Toncoin (TON).
Wedson nonetheless warned against interpreting the recent XRP and altcoin strength as the start of a full-fledged altseason. Similar rotations into higher-beta assets over the past two years have repeatedly faded before developing into sustained trends.
The caution aligns with Alphractal’s Altcoin Season Index, which remains below the 80% threshold typically associated with broad altcoin outperformance versus Bitcoin.
XRP Technicals Hint at Decline Toward $1
XRP’s near-term technical structure is flashing downside risks.
On the daily chart, the token is consolidating inside a symmetrical triangle after a prolonged downtrend, typically considered a bearish continuation setup when formed during declining markets.
A breakdown below the triangle’s lower trendline could trigger a move toward the $1 level, based on the pattern’s maximum height.
The bearish scenario risks invalidation if XRP breaks above the triangle’s upper trendline at around $1.50, which will increase its likelihood of rising toward the 200-day simple moving average (200-day SMA, blue) near $1.75, which has capped upside attempts throughout 2026.