XRP recently fell below the pivotal $2.20 level, intensifying selling activity as a “death cross” looms ominously over the market. Recent weeks have witnessed significant XRP withdrawals from exchanges, suggesting long-term investors are consolidating their holdings. However, short-term indicators reveal persistent bearish momentum.
Strong ETF Interests but Waning Spot Demand
Franklin Templeton’s XRPZ and Grayscale’s GXRP ETFs have seen three days of continuous net inflows, indicating ongoing interest from institutional players. Conversely, Binance has seen its reserves plummet to 2.7 billion XRP, hitting a year-long low. Since October, around 300 million XRP have been pulled out, supporting a trend towards long-term holding, yet spot demand hasn’t been robust enough to balance this accumulation. This has led to renewed short-term sell-offs amidst cautious behavior in derivatives markets.
What is the Key Zone for XRP’s Future?
Maintaining the $2.17–$2.18 support area is crucial. If XRP slips below this range, targets could shift to $2.08 and $1.90, representing a potential move from minor correction to significant decline. For momentum to shift positively, breaching the $2.20 mark and solidifying above the $2.23–$2.24 range with increased trading volume is essential; failing which, any upward movement might merely be a technical bounce.
Technical aspects highlight that the descent initiating at $2.22 has stabilized around $2.18, stressing the resistance strength between $2.23 and $2.24. Over the last two weeks, XRP has traded within a downward channel. Indicators like RSI show persistent midline resistance during rallies, and MACD continues to reflect negativity. The downward slope of the 50-day moving average suggests the potential for quick short-term declines, reflecting patterns observed in the past.
Should XRP dip below key support levels, deeper retreats might become a concern. Despite consistent ETF inflows and diminishing exchange reserves pointing to mid-term structural resilience, the immediate trend remains unfriendly for buyers.
“XRP’s ability to remain above crucial support zones will dictate its market trajectory in the near term,” an expert noted.
Experts conclude with data-driven insights:
- Recent price retreat suggests robust resistance in the $2.23–$2.24 area.
- Failure to reclaim past support could lead to $2.08 and $1.90 levels.
- Stability above $2.20, followed by a break of the $2.23–$2.24 band, is crucial for bullish reversal.
As the market struggles with selling pressure and anticipates potential recovery, XRP stands at a critical juncture. Its ability to navigate these turbulent waters will be watched closely by traders and analysts alike.
