XRP Tanks on Profit-Taking Amidst Ripple Decentralised ID Target
XRP price dived to $1.30 on Sunday amid profit-taking amid Ripple’s decentralised identity (ID) target. The token underperforms a slightly weaker broader market, primarily driven by renewed institutional selling pressure.
ETF outflows are breaking a positive streak, signalling institutional selling pressure, with data showing trading volume of $1 billion over the past 24 hours, 4% higher than the day before.
XRP-linked exchange-traded funds recorded a net weekly outflow of $3.56 million, marking the first withdrawal in April and breaking a two-week streak of inflows.
This shift indicates intensified selling pressure from institutional investors, directly reducing buy-side demand. Weak institutional appetite is a headwind for price recovery, as ETFs are a key channel for large-scale capital.
The drop occurred amid a slight decline in Bitcoin (-0.15%) and total crypto market cap (-0.24%). Technically, XRP trades below its 7-day average of $1.33 and 30-day average of $1.39.
Traders said XRP is showing alpha weakness, underperforming the already soft market, and a reclaim of the $1.33 level to signal short-term stabilisation.
The immediate trigger is institutional selling, but the next major catalyst is the potential markup of the CLARITY Act in the Senate Banking Committee in late April, which could clarify XRP’s regulatory status.
Ripple President Monica Long identified decentralised digital identity as a major use case for the XRP Ledger (XRPL). The vision involves users tokenising personal data—like KYC credentials and DNA—into private, portable tokens secured by zero-knowledge proofs (ZKPs).
Crypto analysts said in separate comments that this would allow individuals to control and prove their credentials without exposing sensitive information. The first ZK privacy transaction on the XRPL testnet was recently executed by the DNA Protocol. Ripple Joins Singapore’s MAS to Advance Trade Finance with RLUSD
