• XRP ETFs recorded their first negative month in March, signaling weakening investor demand
• Multiple zero-inflow days highlight declining interest after a strong launch phase
• XRP price is nearing key $1.30 support, with downside risk if the level breaks

What started as a pretty impressive run for XRP ETFs is now… slowing down, and not in a subtle way. After months of steady inflows and almost no setbacks, March finally broke the streak. For the first time since launch, these spot ETFs closed the month in the red—and that shift feels bigger than just a number on paper.

At the same time, XRP itself is starting to feel the pressure. The token is now slipping in rankings, struggling to hold its ground against BNB for that fourth spot. It’s not a collapse, but the momentum that once looked solid is clearly fading.

Early Success Gave Way to Slower Growth

The launch phase, though, was hard to ignore. Canary Capital’s XRPC kicked things off with a strong debut, even setting a new trading volume record for 2025. Soon after, more ETFs followed, and together they pulled in over $1 billion in roughly a month. For a while, it looked like everything was lining up perfectly.

What stood out even more was consistency. These ETFs went nearly two months without a single day of net outflows—something even Bitcoin and Ethereum ETFs couldn’t quite manage. November and December alone brought in $666 million and $500 million respectively, which, honestly, made the hype feel justified.

March Changes the Tone Completely

But then things shifted. January and February already showed signs of cooling, with inflows dropping to $15.59 million and $58.09 million. Still positive, just… quieter. Then March arrived, and the mood changed entirely.

Global tensions escalated, oil prices jumped, and uncertainty crept into pretty much every market. XRP ETFs weren’t spared. Investors pulled out $31.16 million over the month, marking the first real setback since launch. Even more telling—on 8 out of 22 trading days, there were zero inflows recorded. Not low demand… just none.

XRP Price Starts Feeling the Pressure

Naturally, the asset itself is reflecting that shift. XRP has slipped over 3% on the week and is now hovering dangerously close to the $1.30 support level. It’s one of those zones that tends to matter more than it looks—if it breaks cleanly, the downside could open up faster than expected.

Some analysts are already watching that closely. CW pointed out that a move toward $1.26 could trigger a wave of liquidations, especially for overleveraged long positions. And in markets like this, liquidation cascades can escalate quickly.

Market Sentiment Turns More Cautious

Adding to that, analyst CRYPTOWZRD noted that XRP’s recent daily close didn’t exactly inspire confidence. Price is still flirting with the $1.32 resistance, but hasn’t managed to reclaim it convincingly. If it stays below, the outlook leans a bit weaker… maybe even opening the door for short-term downside setups.

So overall, the picture feels mixed. The ETF story started strong, no doubt about it, but momentum has slowed, and sentiment is shifting. Whether this is just a temporary pause—or the start of something deeper—well, that part isn’t clear just yet.