XRP recently traded at approximately $1.53 despite witnessing fresh capital inflow into U.S.-based spot XRP ETFs. Although the asset saw a rise of around 2.3% over the last 24 hours and about 17% in the past week, it still couldn’t breach the challenging $1.60 to $1.65 range earlier in the week.
ETF Inflow: A Supporting Act for XRP?
On September 23, U.S. spot XRP ETFs saw an influx of $18.04 million, with Bitwise leading by attracting $11.54 million, followed by Franklin Templeton, which added another $6.50 million. This places cumulative net inflows for this segment at a staggering $1.748 billion. Despite the encouraging trend, broader markets present uncertainties, keeping downward risks in play.
Ryan Rasmussen from Bitwise shared that interest in XRP has grown significantly following his presentation to about 400 asset managers, sparking the most inquiries during the session.
Informal polls conducted by Rasmussen revealed that 60% of the participants plan to allocate towards crypto assets within a year. Still, this does not guarantee future fund inflows, though continuous investments into regulated products carve a new demand channel for XRP.
These daily ETF entries remain relatively modest when stacked against the spot market’s breadth. Consequently, while ETF purchases serve as an auxiliary aid, they could fall short of forming a robust base, especially amidst heavy selling pressures.
Could 1.40-1.43 Be the First Line of Defense?
In terms of technical price action, XRP attempted to reach the $1.60 to $1.65 bracket, but it retreated sharply back toward $1.48, pointing more towards support levels than upward targets. Analyst Alejandro Arrieche noted that XRP faced increased selling pressure after crossing $1.50, forecasting that its value could retract to around $1.43.
FXEmpire analyst Alejandro Arrieche emphasized the increased selling pressure once XRP exceeded $1.50, projecting a pullback to approximately $1.43.
A retreat within the $1.40 to $1.43 zone could indicate weakness, and below lie more robust support levels. Analyst Ali Martinez sees the $1.31 to $1.35 range as critical to maintaining upward momentum.
Did We Consider a Downward Spiral Below 1.35?
A downward trajectory has not been confirmed yet. Analyst Yashu Gola suggests the possibility of a double-top formation near the $1.55 to $1.60 mark, with a neckline positioned at around $1.285. A pronounced daily close below this could validate the pattern, driving the price closer to $1.
Currently, XRP remains well above this neckline, with multiple moving averages between $1.28 and $1.40 offering sturdy support, deterring steeper declines. Breaching back into the $1.60 to $1.65 range could weaken the double-top theory substantially.
- The $1.35 mark is pivotal not only as a technical threshold but also for the gap depth below it.
- If buyers hold the $1.40 to $1.43 area, it might lead to a more stable horizontal trend.
- However, if this zone breaks, focus may swiftly shift beneath $1.35, and toward the $1.28 to $1.31 band.
Acknowledging these dynamics, XRP is at a crossroads. Market participants and traders are keenly observing as it navigates through potential supports while keeping an eye on critical resistance levels that could define its next direction.
