Ripple native token XRP pulled back to $1.33 after a brief rally to almost $1.40 failed, while validator support for the XRP Ledger's fixCleanup3_4_0 amendment dropped below the required threshold, pushing its activation to November.
Key Takeaways
- XRP touched almost $1.40 before falling back to $1.33 alongside broader market weakness.
- The XRPL fixCleanup3_4_0 amendment was delayed to November after validator support briefly fell below 80% two days before its planned October 23 launch.
- Spot XRP ETFs ended a 13-week green streak with under $2 million in net outflows for the week ending October 15, picking up less than $1 million in net inflows on October 21.
- Combined XRP reserves on Binance, Upbit, and Bithumb increased by approximately $120 million.
Institutional Push and XRPL Upgrade Delay
Ripple recently endorsed the US Securities and Exchange Commission's proposed Regulation Crypto Assets framework, advocating for clear statutory rules over case-by-case enforcement. The firm backed the principle that investment contracts—rather than tokens themselves—should define whether an asset is a security. Meanwhile, the company expanded its institutional operations by introducing 24/7 RWA perpetual swaps through Ripple Prime, while Cross River Bank partnered with Ripple to integrate its RLUSD stablecoin onto its banking platform.
On the technical side, the XRP Ledger experienced a setback. The fixCleanup3_4_0 upgrade was scheduled for activation on October 23, but validator support dropped below the mandatory 80% supermajority threshold just two days prior, delaying implementation until November. On social channels, XRP launched an official X account, gaining over 50,000 followers in hours and passing 150,000 total followers with welcomes from Ripple CEO Brad Garlinghouse, Gemini, Uphold, Flare, and MoonPay.
ETF Outflows and Price Action Setup
Institutional demand through spot XRP ETFs showed signs of cooling. Following a 13-week streak of net inflows that peaked at $75 million in a single week, the products saw under $2 million in net outflows during the week ending October 15. After two consecutive days of zero reportable flows, the ETFs attracted less than $1 million on October 21.
In spot markets, XRP spiked to nearly $1.40 as Bitcoin neared $85,000 and Ethereum crossed $2,500. However, Bitcoin's rejection at $85,000 dragged XRP back to $1.33, mirroring earlier price action where XRP price slipped to $1.31.
According to Santiment, XRP's 365-day MVRV ratio sits at 0.92, placing average one-year buyers at a loss. Smaller Binance withdrawals hit their highest share of transfers since October 2024, while whale transactions declined. Analyst ChartNerd noted that failure to hold the 20-week EMA on weekly closes could trigger a retest of $1.00, whereas holding $1.33 keeps open targets at $1.50-$1.55 and up to $2.00.
Why It Matters
The stalling of spot XRP ETF inflows alongside a $120 million accumulation of exchange balances signals that institutional momentum has temporarily paused. While Ripple's regulatory push and institutional stablecoin deals build long-term infrastructure, short-term price movement remains tightly bound to broader market macro trends. Market participants should monitor whether validators finalize the XRPL amendment in November to restore developer momentum while XRP defends critical weekly moving averages.
