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XRP dips to $1.88 as bears regain control
XRP, the cross-border payment token, fell below a key support level after failing to break through resistance at the start of the week, according to market data.
XRP traded near $1.88 into the Asian afternoon after a short-lived rebound was rejected at a major resistance zone. The decline extends the token’s retreat from July’s all-time high and has dulled near-term trader sentiment, even as institutional demand via spot XRP ETFs remains resilient.
Market context: ETF inflows vs. technical pressure
Spot XRP ETFs have posted consecutive net inflows since the first fund launched on Wall Street on Nov. 13, with combined assets now above the $1 billion AUM threshold, according to SoSoValue. That sustained demand from exchange-traded products contrasts with the short-term price weakness, creating a mixed on-chain and market-flow picture.
ETF flows
The five spot ETF products recorded their largest daily net inflow since Dec. 5 on Monday, reinforcing that institutional appetite for XRP remains intact. ETF inflows are an increasingly important fundamental metric for crypto investors evaluating medium-term support for the token.
Technical indicators
Technical tools also flagged caution. The TD Sequential indicator issued a sell signal after XRP’s recent double-digit percentage bounce, signaling a potential pause or correction. On higher timeframes, some momentum metrics are flashing levels historically associated with capitulation.
Sentiment and on-chain signals
Analytics platform Santiment reports a spike in negative social sentiment, rising above average levels. Historically, similar surges in negativity have preceded rapid recoveries — Santiment points to late June, when negative chatter was followed by a rally into July’s ATH. While sentiment alone isn’t a timing tool, it serves as a contrarian indicator for many traders.
Community outlook
Community analysts remain divided. Some members of the XRP ecosystem, including known proponents, still predict a fresh all-time high next year despite the short-term pullback. The divergence between fundamentals (ETF flows and on-chain metrics) and technical sell signals creates a tactical environment where risk management is essential.
What traders should watch
Key levels to monitor include the recent support zone below $1.90 and resistance near the rejected highs. Traders will also watch ETF daily inflows, Santiment’s sentiment readings, and momentum indicators like the Stochastic RSI and TD Sequential for clues on whether the pullback will deepen or set up another leg higher.
For investors focused on blockchain and cross-border payments, XRP’s long-term thesis remains tied to adoption and regulatory clarity. Short-term price action, however, is being shaped by a tug-of-war between technical pressure and steady ETF demand.
Source: crypto
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