XRP has fallen nearly 7% over seven days to test key support near $1.32 after failing to break above $1.60 resistance, while net inflows into XRP spot ETFs plummeted to just $4 million so far in October. Despite maintaining $3 billion in daily trading volume—representing roughly 4% of its circulating market capitalization—the digital asset faces selling pressure as exchange deposits reach multi-month highs.
Key Takeaways
- XRP dropped 7% over seven days after rejecting resistance at $1.60, testing the $1.32 support level near its 200-day EMA.
- Net inflows into XRP ETFs fell sharply to $4 million in October, down from $121.4 million in September, according to SoSoValue data.
- Exchange inflows reached their highest level since July 2026, adding to profit-taking concerns as the Crypto Fear and Greed Index dropped from 80 to 58.
Slower ETF Demand and Rising Exchange Inflows
Data from SoSoValue shows that institutional appetite via XRP investment products has cooled significantly following September's strong $121.4 million net inflow performance. If the current October pace holds, monthly inflows will reach approximately $17 million. While October cumulative flows remain positive, the sharp slowdown removes a critical pillar of buying support.
Compounding the pressure, on-chain data reveals that XRP transfers to centralized exchanges have surged to their highest level since July 2026. Historical patterns suggest cautious behavior; a previous uptick in exchange deposits coincided with a price decline from $1.14 to $1.00. Meanwhile, broader market sentiment has softened, pushing the Crypto Fear and Greed Index down from 80 to 58. This weakness aligns with broader market pullbacks where macro sentiment and interest rate expectations continue to weigh on risk assets. Market participants note that latest Federal Reserve minutes point to delayed interest rate decisions until at least December, reinforced by softer-than-expected August PCE inflation data.
Technical Analysis and Key Price Levels
From a technical perspective, XRP is currently testing support near its 200-day exponential moving average (EMA) around $1.32. If bulls fail to defend this region, the next key demand zone sits near $1.26, a price level that previously attracted strong buyer interest.
Momentum indicators signal near-term seller control, with the Relative Strength Index (RSI) approaching 40. Although analysts maintain a medium-term price target of $1.80, any prospective rally requires a sustained breakout back above the $1.60 resistance zone. Traders are also keeping a close eye on supply dynamics, given ongoing discussions around how circulating token supply impacts overall market liquidity.
Why It Matters
The steep drop in XRP ETF inflows highlights how sensitive altcoin rallies remain to institutional fund flows. While retail trading volume remains robust at $3 billion, institutional caution combined with rising exchange deposits suggests key market participants are reducing exposure after the rally to $1.60. If XRP breaks below $1.32 toward $1.26, it could signal a broader consolidation phase across top-cap altcoins until macroeconomic signals or regulatory catalysts re-emerge.
