XRP has shown signs of stabilization following a sharp six-day sell-off that saw its price drop approximately 17% over the past week. The token now ranks as the second-worst performer among the top ten cryptocurrencies by market capitalization, behind only Zcash (ZEC).
Institutional flows and macroeconomic pressure
Despite modest stabilization, political uncertainty and negative macroeconomic trends continue to put pressure on XRP. Analysts attribute the recent weakness in part to subdued institutional participation. Data from SoSoValue indicated that XRP investment funds, such as ETFs, recorded no inflows or outflows on Wednesday, suggesting a lack of new institutional demand.
This inactivity followed significant withdrawals earlier in the week. On Monday, XRP ETFs saw $10 million in net outflows, marking the largest daily withdrawal since March 2026. The funds lost a further $7 million on Tuesday, bringing weekly outflows to $17.6 million.
Rising US inflation has emerged as a further obstacle. The latest Consumer Price Index data showed stronger-than-expected numbers, fueling concerns that inflation remains stubbornly high. As a result, the Federal Reserve may maintain a restrictive monetary policy.
According to CME Group’s FedWatch tool, traders now see a 15% chance that the Federal Reserve could implement a 50-basis-point rate hike during its December policy meeting. While still low, this probability reflects mounting anxiety about sustained inflationary pressure.
The Crypto Fear and Greed Index has slipped to 26, placing the market in fear territory and signaling increased caution among cryptocurrency investors amid ongoing monetary policy and regulatory uncertainty.
Sustained market fear and policy unpredictability could limit XRP’s ability to recover meaningfully in the near term.
| Day | XRP ETF Net Flow |
|---|---|
| Monday | -$10 million |
| Tuesday | -$7 million |
| Wednesday | $0 |
Mini dictionary: SoSoValue is a digital assets analytics company that tracks ETFs, fund flows, and other on-chain metrics for institutional and retail investors.
Technical outlook: RSI suggests short-term rebound
Technical indicators for XRP now show the possibility of a short-lived recovery. On the daily chart, XRP has reached the midpoint of its second bullish fair value gap (FVG), which previously acted as a zone of buying interest and support.
Momentum indicators, particularly the Relative Strength Index (RSI), suggest an oversold condition. Following six consecutive days of selling, the RSI has dropped below 30, a threshold widely interpreted as oversold in technical analysis. Historically, cryptocurrencies may stay in oversold territory during prolonged downtrends.
If buyers manage to defend current support, XRP could attempt a move up towards $1.20, where a resistance level has formed. Overcoming this level could signal improving buying momentum. However, a more significant resistance lies near $1.35, which needs to be recaptured to fuel expectations of a broader bullish reversal.
If XRP fails to hold its current support around the $1 mark, the downside risk increases sharply, with key support levels at $0.98 and, in a deeper correction scenario, near $0.80.
A decisive breakdown below $1 could accelerate further declines, exposing the cryptocurrency to lower demand zones and an extended correction. Until uncertainty surrounding macroeconomic factors and regulatory developments diminishes, XRP may continue to encounter challenges regaining positive momentum.
