Fund Inflows Slashed to One-Tenth in a Week! Will XRP Defend the $1.40 Support Level?

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XRP (Ripple), facing strong downward pressure as institutional and retail buying interest simultaneously cooled, stands at a critical juncture. With fund inflows into spot exchange-traded funds (ETFs) plummeting and the vitality of the derivatives market also declining, concerns of further declines due to the collapse of key support levels are sweeping the market.

According to investment media FXStreet on April 23 (local time), XRP is struggling to defend the $1.41 support level amid a broader correction in the cryptocurrency market. After being rejected from its weekly high of $1.46 on Wednesday and retreating, it has continued its decline for two consecutive days, facing the risk of breaking down the critical demand zone at $1.40.

The main reason behind this bearishness is the rapidly cooling demand from institutional investors. According to SoSoValue data, fund inflows into XRP spot exchange-traded funds totaled only about $5.42 million by Wednesday this week, a stark contrast to last week's $55.39 million. Wednesday's daily inflow also remained at $2.42 million, indicating an urgent need for additional momentum to drive a fund market with cumulative inflows of $1.28 billion and net assets of $1.09 billion.

Retail investor sentiment is also showing little sign of recovery. Although the Crypto Fear & Greed Index rose from 32 to 46 the previous day, showing signs of improving investor sentiment, the Open Interest in the futures market remains stagnant at around $2.58 billion. According to CoinGlass data, this figure is significantly lower than the $10.94 billion recorded last July when XRP reached an all-time high of $3.66, indicating that the disappearance of retail buying pressure is undermining bullish prospects.

Technical indicators suggest that XRP is trapped below key Exponential Moving Averages (EMAs). The 50-day EMA at $1.41 is currently acting as immediate resistance, with the 100-day EMA at $1.54 and the 200-day EMA at $1.78 above it forming a strong downtrend structure. While the Moving Average Convergence Divergence (MACD) on the daily chart shows a slight positive value and the Relative Strength Index (RSI) remains neutral at 53, the Money Flow Index (MFI) near 79 suggests an overbought condition, implying a persistent risk of further selling from highs.

To escape short-term downward pressure, the market must close stably above the daily open price of $1.43. For an upward move, a breakthrough of $1.54, $1.67, and ultimately $1.78 is necessary to expect a broader recovery. Conversely, if it fails to hold the 50-day Exponential Moving Average support and gives up the critical demand zone at $1.40 and even the weekly open of $1.39, the publication warns that the decline could accelerate further due to the overall bearish structure.

*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.*