XRP wobbles amid broader crypto market drawdown

Ripple (XRP) losses are deepening below the $1.40 pivotal level and is trading at $1.37 at the time of writing on Thursday. The decline is part of a persistent drawdown from the weekly high of $1.61, reached on March 17, and aligns with a broader crypto market sell-off driven by macroeconomic uncertainty and geopolitical tensions, especially in the Middle East.

XRP sees mild capital inflows as risk-off sentiment persists

Interest in XRP digital investment products remains on shaky ground, as observed through the uptake of spot Exchange-traded Funds (ETFs). Despite inflows extending for consecutive days, they have been significantly low at $1.12 million on Wednesday and $1.4 million on Tuesday.

On Monday, activity remained quiet, with no flows recorded. SoSoValue data shows that there were only two days of inflows last week, where US-listed ETFs received $1.98 million on Friday and nearly $5 million on March 17.

Meanwhile, total assets under management have slipped to approximately $996 million, down from $1.65 billion at the beginning of the year, and cumulative inflows average $1.21 billion.

Persistent risk-off sentiment indicates a lack of confidence in XRP’s recovery potential or the token’s ability to sustain rallies. If this outlook persists, rebounds will continue to be absorbed by increasing supply, as investors reduce their risk exposure.

Technical outlook: XRP sellers tighten their grip

XRP sellers are largely in control, pushing the price downward to $1.37 at the time of writing on Thursday. The near-term bias is mildly bearish as XRP extends the pullback from the recent spike around $1.54 and holds well below the downward-curving 50-day, 100-day and 200-day Exponential Moving Averages (EMAs), which cluster above $1.48 and maintain a broader downward trend.
The rising support trendline from $1.12 has been broken, suggesting fading buying interest after the sharp mid-month advance. Similarly, the Moving Average Convergence Divergence (MACD) indicator has slipped marginally below its signal line on the daily chart, confirming waning bullish momentum. The Relative Strength Index (RSI) around 43 remains below the 50 midline on the same chart, reinforcing a bearish tone.

Initial resistance appears at the pivotal $1.40 threshold and the supply area at $1.43, where recent rebounds stalled. A stronger hurdle lies near the 50-day EMA at $1.48, followed by the $1.54 area. Above that area, the 100-day EMA at $1.66 would come within the scope. On the downside, immediate support lies at the weekly low of $1.36, with a clear break lower opening the door toward $1.32 as the next key demand zone.

(The technical analysis of this story was written with the help of an AI tool.)