XRP has recently dipped below the crucial $2.20 mark, amplifying selling pressure as a “death cross” signal loomed over the market. With significant withdrawals of XRP from exchanges in recent weeks, long-term investors appear to be in a consolidation phase. Short-term indicators, however, show that the downward trend remains strong.
ETF Inflows Stay Robust, Yet Spot Demand Weakens
Franklin Templeton’s XRPZ and Grayscale’s GXRP ETFs have attracted net inflows for three consecutive days, indicating sustained institutional interest. Nonetheless, Binance‘s reserves have decreased to 2.7 billion XRP, marking the lowest level in a year. While approximately 300 million XRP have been withdrawn since October, bolstering long-term holding trends, spot demand remains insufficient to counterbalance this accumulation. Position closures and risk aversion in derivatives markets have reignited short-term selling pressure.
Technically, the retreat that commenced at $2.22 has stabilized at $2.18, underscoring the robustness of the resistance in the $2.23–$2.24 range. For the past two weeks, the price has been moving within a declining channel. The RSI indicator shows consistent resistance below the midline during each rally attempt, while the MACD continues to deepen in the negative zone. The slope of the 50-day moving average has turned downward, a configuration known to accelerate short-term declines based on historical data.
Key Zone: $2.17–$2.18 Range
Should XRP fail to maintain the $2.17–$2.18 support range, analysts warn that the $2.08 and $1.90 levels could come into focus. This zone represents the threshold between a routine correction and a deeper retreat. For price momentum to resume, a break above the $2.20 mark and subsequently the $2.23–$2.24 band with increased volume is necessary. Otherwise, any recovery could be merely a technical rebound.
Historical “death cross” formations suggest that unless the price surpasses the 50-day moving average, downward risks remain elevated. While continued ETF flows and decreasing exchange reserves indicate structural strengthening in the mid-term market, the short-term trend still favors sellers.
