In the broader context of a crypto market rebound, Ripple's token fell approximately 5% to $1.03 last week, while Bitcoin, Ethereum, and Solana each gained between 1% and 4% during the same period. The total crypto market capitalization rose 1.4% to $2.19 trillion, but Ripple's performance clearly lagged behind.

Notably, Ripple exchange-traded funds attracted net capital inflows for the fourth consecutive week, but the inflow volume contracted dramatically. According to SoSoValue data, the net inflow last week was about $1 million, a decline of roughly 93% compared to the previous week. In contrast, Bitcoin and Ethereum ETFs attracted hundreds of millions of dollars in inflows during the same period.

Multiple factors weighing on the price

Market analysts suggest that Ripple's weak price action is driven by multiple overlapping factors, with regulatory uncertainty topping the list. The U.S. Senate has postponed deliberation on the Digital Asset Market Clarity Act, a piece of legislation seen as crucial for clarifying Ripple's legal status and unlocking institutional participation. The earliest possible vote is not expected until mid-September.

Nexo analyst Ilia Kalchev pointed out that the current positioning in Ripple is relatively neutral. While large order flow continues to exist, volume indicators have turned neutral, suggesting the market is in a phase of quiet digestion rather than selling off or confirming a breakout.

Long-term outlook remains optimistic

Despite short-term price pressure, the market remains optimistic about Ripple's long-term prospects. Jack Claver, Chairman of the digital asset multi-family office Digital Ascension Group, believes that Ripple is increasingly being positioned as a global bridge asset. It could potentially be recognized by the Bank for International Settlements as a Tier 1 asset鈥攖he highest capital classification for assets that banks can hold, characterized by the greatest liquidity and stability.