XRP traded near $1.33 on May 31 as traders watched whether fresh exchange outflows and ETF demand could help the token recover from recent weakness. According to Santiment data, XRP recorded its largest exchange inflow of the year on Thursday with 22.80 million XRP moving onto trading platforms, followed by a quick reversal with another 25.24 million XRP moving back off exchanges. The firm noted that this large exchange inflow happened near XRP's local price bottom, with retail traders who sold during the move left "wishing they hadn't" after XRP gained about 5% from that capitulation point. The reversal in exchange flow gives traders a fresh signal to watch as XRP tries to defend its short-term price structure, though the data does not confirm a full trend change. As AMBCrypto reports, rather than extending lower, XRP stabilized near a 15-week low, suggesting buyers absorbed much of the incoming supply and absorbed the selling pressure.
XRP ETFs reportedly recorded $131.94 million in net inflows this month, adding to the view that regulated XRP products are still attracting demand despite the token's recent price weakness. Earlier reports showed that XRP investment products attracted $85.8 million in inflows over three weeks, during which Bitcoin and Ethereum funds recorded large net outflows. This contrast gives XRP a stronger institutional angle than its weak spot price suggests. As previously reported by crypto.news, Morgan Stanley disclosed holdings in two XRP-focused exchange-traded funds, reporting 1,700 shares of the Volatility Shares XRP ETF and 100 shares of the Grayscale XRP ETF in a first-quarter filing. However, ETF inflows alone do not guarantee a price rally, as XRP still needs stronger demand in the open market and a clean break above resistance.
XRP's on-chain structure is showing early signs of improvement as the token transitions from capitulation to stabilization. According to AMBCrypto, the Exchange Supply Ratio continues trending lower, holding near 0.03, which reflects investors moving XRP into self-custody and reducing coins available for immediate selling. The Network Value to Transactions (NVT) Ratio has moderated toward 396 after earlier extremes, suggesting network usage increasingly supports valuation. The RSI has recovered to 54.5, showing momentum is no longer firmly bearish as participants transition from aggressive selling toward accumulation. The Awesome Oscillator (OA) remains near -0.06, indicating neutral momentum, but declining supply and improving network efficiency are gradually reducing bearish pressure. As selling liquidity tightens, buyers may need less capital to influence price direction, strengthening conditions for a durable market bottom.
XRP's price has settled into a tight $1.33-$1.35 range, signaling that selling pressure is gradually losing momentum after weeks of heavy distribution. According to AMBCrypto, the tight range formation reflects buyers continuing to absorb supply near the $1.30 support zone, with each retest attracting demand and preventing a deeper breakdown despite broader market uncertainty. Resistance near $1.40 continues limiting upside progress, reflecting a market still searching for conviction after months of volatility and shifting sentiment. The 3-month liquidation heatmap identified a strong magnetic zone around $1.26, representing a cluster of long liquidations that could pull prices lower in the short term. After clearing this liquidity pocket, XRP could potentially rebound toward the opposite end of the established range. Ali Martinez from CW is watching the bottom of XRP's rising channel at $1.34 as a possible buying zone, with the next targets at $1.37 and $1.40 if buyers hold.
