XRP Down 18% In A Week: What Is Going On?

Weighed down by deteriorating broader crypto market sentiment, XRP (CRYPTO: XRP) has fallen 18% over the past week, but some traders refuse to give up hope.

Trader Notes: Trader Cryptoinsightuk said multiple long-term narratives are converging around XRP, highlighting its low transaction fees, high throughput, built-in decentralized exchange and automated market maker, and a ledger that has operated reliably for years without major disruption.

With Ripple having largely resolved its long-running legal battle with the SEC and combined with its expansion into institutional products, Cryptoinsightuk says XRP is uniquely positioned to benefit if U.S. crypto market structure legislation passes.

He added that there is a clear path for XRP to become “the star of the show” this cycle, particularly if capital rotates into assets with regulatory certainty and real-world utility.

Cryptoinsightuk also sees Bitcoin as deeply oversold and expects it to rally toward new highs later in the year, a move he believes could act as a catalyst for XRP to lead the next phase of the cycle.

Statistics: According to SoSoValue data, XRP spot ETFs recorded $19.5 million in net inflows as of Feb. 3, contrasting with significant outflows from spot Bitcoin ETFs over the same period.

Community News: On the ecosystem front, Flare Network announced the launch of its first modular lending and borrowing framework for XRP and related assets through an integration with Morpho, a multi-chain crypto lending protocol.

The new setup allows FXRP holders to earn yield, borrow stablecoins without selling their XRP exposure, and construct more advanced leverage and yield strategies.

Meanwhile, Ripple Stablecoin Tracker data showed that Ripple USD (CRYPTO: RLUSD) hit a new milestone, with $35 million worth of the stablecoin minted at the treasury overnight marking its largest single issuance to date.

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