XRP edged lower on Wednesday, trading at $1.34 following a period of profit-taking and a shift in market sentiment that pressured cryptocurrencies widely. The token had previously rallied strongly in August, rising from $1.00 to a high of $1.70 before the recent slowdown.
ETF inflows and trading activity
Despite the price correction, investment in XRP-focused exchange-traded funds has remained resilient. Spot XRP ETFs saw net inflows of $14.38 million on Tuesday, rising from nearly $6 million the day before, according to CoinGlass. These inflows have continued for 11 consecutive trading days, pushing cumulative investments in these funds to $1.68 billion with net assets of about $1.44 billion.
Retail and derivatives trading demand has slightly decreased in the past 24 hours, falling 2.5% to a total of $3.04 billion. This trend points to a gradual reduction in exposure through perpetual futures contracts by traders who may be looking to limit risk during the market correction.
XRP’s price action continues to attract attention as spot ETF inflows hit a streak of 11 days, indicating sustained institutional interest even as retail traders reduce positions.
The combination of robust ETF inflows and a slight drop in derivatives activity suggests that while longer-term investors remain engaged, shorter-term sentiment is more cautious.
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AAPLGeopolitical influences and sentiment shifts
Wider market pressure has mounted amid renewed geopolitical tensions between the United States and Iran. Recent military strikes involving both nations have fueled uncertainty and led to selling across risk-sensitive assets, including XRP.
The Crypto Fear & Greed Index dropped from 74 to 71 on Wednesday, signaling that investors are becoming more risk-averse even though market sentiment remains in “Greed” territory. Analysts believe a further decline in confidence could push XRP below its psychological support at $1.30.
XRP’s ongoing correction has so far remained orderly, aided by consistent institutional inflows. Still, a worsening risk environment may test support levels further.
Technical analysis and price barriers
XRP holds a mildly bearish technical outlook after falling below its 200-day exponential moving average (EMA) at $1.35. The token is also trading under a descending resistance trendline near $1.40, presenting a cluster of overhead resistance.
Despite these pressures, XRP remains above its 50-day and 100-day EMAs, which are grouped around $1.22, providing a key support area for the token.
| Technical Indicator | Current Level | Implication |
|---|---|---|
| 200-day EMA | $1.35 | Resistance |
| Descending Trendline | $1.40 | Resistance |
| 50 & 100-day EMAs | $1.22 | Support |
On the charts, the Relative Strength Index for XRP stands near 40, reflecting fading momentum after August’s rally. The Moving Average Convergence Divergence (MACD) indicator has turned negative, reinforcing the likelihood of further short-term weakness.
For buyers to return and the bullish trend to strengthen, XRP needs to reclaim the 200-day EMA at $1.35 and break above the descending trendline at $1.40. On the downside, a close below the $1.22 support zone could trigger a more pronounced decline.
The technical setup suggests that while institutional interest remains robust, XRP’s recovery depends on overcoming key resistance levels and continued investor confidence.
For now, sustained ETF inflows are absorbing some selling pressure, but technical and sentiment challenges persist.
