Why is money flowing into XRP (Ripple) ETFs, yet its price is falling?…Mixed Signals Below $1.40

▲ XRP, bear market/AI-generated image ©

XRP (Ripple) continues its weakness, falling below $1.40 despite institutional funds flowing into XRP spot ETFs and accumulation by large investors. XRP traded at $1.37 on Thursday, marking a two-day decline, as geopolitical tensions in the Middle East, rising international oil prices, and caution surrounding US inflation data are pressing overall investor sentiment in the cryptocurrency market.

According to investment media FXStreet on September 10 (local time), market attention is focused on the US Consumer Price Index (CPI) to be announced on Friday and the Federal Reserve's (Fed) monetary policy decision next week. A higher-than-expected CPI could fuel inflation concerns and increase the likelihood of interest rate hikes, while a slowdown in prices below expectations could strengthen hopes for a rate freeze or easing. K33 Research cited the Producer Price Index (PPI) and CPI as key volatility catalysts, also evaluating the September 15 US cryptocurrency market structure bill and the Senate vote related to the Clarity Act as major variables in the cryptocurrency market.

Despite the price adjustment, the proportion of XRP held by large investors is increasing. According to Santiment, the share of addresses holding 100,000 to 1 million XRP rose from approximately 9.3% on September 3 to 9.4% on Thursday. In contrast, addresses holding 1 million to 10 million XRP began profit-taking after the rally from $1.00 to $1.70, and their current holding proportion is stable at around 5.8% of the total supply. FXStreet explained that sustained demand is necessary for XRP to attempt a stronger breakout.

Institutional demand also continues. US-listed XRP spot ETFs saw a net inflow of approximately $12 million on Wednesday, a significant increase from $1.5 million the previous day. According to SoSoValue data, cumulative net inflows are increasing to approximately $1.7 billion, and net asset size is around $1.5 billion. Although the price has corrected from its August high of $1.70, institutional fund inflows through ETFs remain relatively stable.

Technically, XRP is trading above $1.37, with its first support level at $1.36, where the 200-day Exponential Moving Average (EMA) is located. The Relative Strength Index (RSI) is in the mid-50s, indicating neutral to slightly positive momentum, but the Moving Average Convergence Divergence (MACD) has fallen into negative territory, suggesting ongoing short-term downward pressure. In case of further decline, $1.27 (where the 50-day EMA is located) and $1.24 (near the 100-day EMA) are presented as the next support levels.

For a rebound, XRP must first recover $1.40. After that, the Parabolic SAR, located at approximately $1.58, is considered a key resistance level. If XRP forms a daily close above $1.58, the potential for an uptrend could be strengthened again, but if it fails to break through, there is an analysis that it may continue its current sideways trend above the main EMAs.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*