- XRP price lags recovery as risk aversion persists:

Market sentiment in the crypto sector has notably deteriorated over the past few weeks, with the Fear and Greed Index settling at an extreme fear level of 15 points on Wednesday, down from 15 points the previous day. This risk aversion continues to suppress demand for risky assets, keeping price movements very limited.

Crypto Fear and Greed Index | Source: Alternative
Spot XRP ETFs saw a reversal in investor flows, recording nearly $3 million in outflows on Tuesday following significant inflows of $16 million on Friday and $15 million on Monday.

Despite recent volatility, cumulative net flows remained stable at $1.48 billion, with an average net managed assets of $944 million, according to SoSoValue data. This suggests that while short-term sentiment is volatile, long-term investor interest in XRP products has proven resilient amid ongoing market challenges.

XRP ETF flows | Source: CoinGlass
Strong institutional participation remains essential to offset the persistent weakness in retail trading activity. According to CoinGlass data, open interest in perpetual futures fell to $2.31 billion on Wednesday, down from $2.35 billion the previous day, significantly below its peak of $10.94 billion in July. This decline in open interest underscores retail investors' risk-averse stance, while a sustained recovery will likely depend on a return of their trading activity.
$XRP ‌