XRP extended its pullback on Wednesday, trading around $1.34 as profit-taking and softer risk appetite weighed on the token. The decline comes after a sharp August run that lifted XRP from $1.00 to $1.70, with the subsequent rally losing momentum as traders took gains and sought liquidity.
While spot demand appears mixed on the margin, flows into XRP exchange-traded funds have continued to provide a partial cushion. Data also pointed to a more cautious tone across crypto markets amid renewed geopolitical concerns.
Key takeaways
- Price move: XRP slid further, hovering near $1.34.
- Catalyst: Profit-taking and deteriorating risk sentiment, reinforced by renewed U.S.-Iran tensions.
- ETF support: Spot XRP ETFs recorded $14.38 million in net inflows on Tuesday, extending an 11-day positive streak.
- Market implication: Technical indicators suggest the token remains in a corrective phase unless buyers reclaim key levels.
- Key levels to watch: The 200-day EMA near $1.35 and a descending resistance area around $1.40 are near-term hurdles.
What drove the decline
According to the article’s data, XRP’s drop is being driven by a combination of trader positioning and broader market caution. After rallying about 72% in August, XRP’s momentum cooled as traders locked in gains and the market searched for fresh bids.
In parallel, renewed tensions involving the United States and Iran appear to be weighing on sentiment across risk-sensitive assets, including cryptocurrencies. Investors have been assessing the implications of strikes involving the two countries, which has contributed to selling pressure beyond XRP.
On Wednesday, the Crypto Fear & Greed Index fell to 71 from 74 in the prior session, according to the index. The level remains in “Greed,” but the drop signals that confidence is easing and could lead to additional selling if caution intensifies.
ETF flows and derivatives activity
Despite the spot pullback, the ETF tape suggests underlying demand has not disappeared. According to CoinGlass, spot XRP ETFs recorded $14.38 million in net inflows on Tuesday, up from nearly $6 million the previous session.
The report said this boosted the funds’ streak of positive daily flows to 11 consecutive trading days. Cumulative inflows now total $1.68 billion, and the ETFs hold approximately $1.44 billion in net assets. Continued inflows may help absorb some of the selling pressure, even as spot and leverage metrics soften.
Separately, the report cited a 2.5% decline in retail and derivatives demand over the past 24 hours, bringing the figure to $3.04 billion. That points to traders gradually trimming exposure through perpetual futures contracts rather than aggressively adding leverage during the dip.
XRP’s technical picture worsens near key resistance
On the charts, the article described a mildly bearish short-term setup after XRP fell below its 200-day exponential moving average at $1.35. XRP is also trading beneath a descending resistance trendline near $1.40, creating a concentrated area where sell orders may be more likely to appear.
That said, the correction has not fully broken the broader technical structure. XRP remains above the 50-day and 100-day EMAs, which cluster just below $1.22, suggesting buyers still have a significant support base beneath the current price.
Momentum indicators also point to a slowdown after the August surge. The report said the Relative Strength Index sits near 40 on the 4-hour chart, implying bullish momentum is fading. The Moving Average Convergence Divergence indicator has moved into negative territory, reinforcing the possibility of further short-term weakness.
According to the article, the $1.35 level is the first immediate resistance that sellers may defend. A move back above the 200-day EMA would also put the descending trendline near $1.40 back in focus. On the downside, the next major support zone is around the $1.22 area tied to the 50-day and 100-day EMAs, and a daily close below that region could signal that buyers are losing control.
What to watch next
For investors, the near-term battleground is whether XRP can reclaim $1.35 and then $1.40 to reverse the corrective tone. Continued ETF inflows may help limit downside, but a broader risk-off turn driven by geopolitical developments could still pressure crypto.
Attention is likely to remain on ETF flow updates and any fresh macro or geopolitical headlines that influence risk appetite, alongside upcoming crypto market catalysts such as additional ETF reporting data and broader digital-asset liquidity signals.
