XRP dips to $1.32 despite 11-day spot ETF inflow streak

XRP extended its decline on Wednesday, trading around $1.34 as profit-taking and deteriorating risk sentiment weighed on the token.

The pullback follows a 72% rally in August that lifted XRP from $1.00 to $1.70. The advance subsequently lost momentum as traders locked in gains and the market searched for fresh liquidity.

Despite the correction, continued inflows into spot XRP exchange-traded funds and a slight increase in futures activity suggest that underlying demand has not disappeared.

Geopolitical tensions weigh on XRP

Renewed tensions between the United States and Iran are creating headwinds for XRP and the broader cryptocurrency market.

Investors are assessing the market impact of strikes involving the two countries, which have contributed to selling across risk-sensitive assets.

The Crypto Fear & Greed Index fell to 71 on Wednesday from 74 during the previous session. Although the index remains in the “Greed” category, the decline indicates that investors are becoming more cautious.

A further deterioration in sentiment could increase selling pressure and push XRP below the psychological $1.30 level.

XRP’s correction remains relatively controlled as institutional investment products continue to attract capital.

According to CoinGlass, spot XRP ETFs recorded $14.38 million in net inflows on Tuesday, up from nearly $6 million during the previous session.

The latest increase extended the products’ positive flow streak to 11 consecutive trading days. Cumulative inflows now total $1.68 billion, while the funds hold approximately $1.44 billion in net assets.

Continued ETF demand could help absorb selling pressure and support XRP’s eventual recovery.

Retail and derivatives demand have slightly declined over the past 24 hours, down 2.5%, and now stand at $3.04 billion. 

The dip indicates that traders are gradually decreasing exposure through perpetual futures contracts.

XRP slips below the 200-day EMA

XRP maintains a mildly bearish short-term outlook after falling below its 200-day exponential moving average at $1.35.

The token also trades beneath a long-standing descending resistance trendline near $1.40. These two barriers create a concentrated area of overhead selling pressure.

However, XRP remains above the 50-day and 100-day EMAs, which are clustered just below $1.22. 

This suggests that the broader technical structure retains some support despite the current correction.

The Relative Strength Index stands near 40 on the 4-hour chart. The reading indicates that bullish momentum is fading after XRP’s powerful August rally.

The Moving Average Convergence Divergence indicator has moved into negative territory, reinforcing the possibility of further short-term weakness.

Together, the indicators suggest that XRP remains in a corrective phase and requires stronger buying pressure to resume its recovery.

The 200-day EMA at $1.35 represents XRP’s first immediate resistance level. A break above this moving average would bring the descending trendline near $1.40 into focus. 

Buyers must reclaim both levels to ease the broader bearish pressure and improve the prospects of another rally.

On the downside, the 50-day and 100-day EMAs near $1.22 form the next major support zone.

A daily close below this area would suggest buyers are losing control and could expose XRP to a deeper decline.

For now, sustained ETF inflows are helping offset some selling pressure, but XRP must recover above $1.35 and $1.40 to reestablish a convincing bullish trend.