XRP has fallen nearly 7% over the past week after its latest rally failed to break through resistance at $1.60, leaving traders watching nearby support levels for signs that the correction could stabilize. Trading activity remains elevated at approximately $3 billion — equivalent to nearly 4% of the token's circulating market capitalization — but a sharp slowdown in ETF inflows and increased transfers to exchanges suggest buyers face a more challenging environment. The pullback has come alongside broader weakness across the cryptocurrency market and cooling sentiment following the recent advance.

XRP ETF inflows slow sharply in October

XRP-linked exchange-traded funds attracted $121.4 million in net inflows during September, according to SoSoValue figures cited in the analysis. So far in October, investors have added only around $4 million. At that pace, the report estimates monthly inflows of approximately $17 million, although the final total will depend on demand over the remaining sessions.

The slowdown points to weaker buying through investment funds rather than outright outflows — October's cumulative flows remain positive, so the data does not establish that investors are withdrawing capital. ETF flows are closely tracked as a barometer of demand from investors who prefer gaining exposure through regulated fund shares rather than holding the token directly, which is why reduced ETF demand removes a source of support as XRP attempts to find a floor.

Exchange deposits climb

Onchain data adds to the cautious picture. XRP inflows to exchanges have accelerated over the past two weeks, reaching their highest level since July 2026, according to the report. The earlier increase coincided with a decline from approximately $1.14 to $1.00, and the analysis suggests another period of selling could follow the latest rise in deposits.

Transfers to exchanges can indicate that holders are preparing to sell, but they do not confirm completed sales, since some deposits may serve trading, collateral or other purposes. With XRP retreating from resistance, the increased inflows nevertheless add to concerns that early buyers could take profits.

Market sentiment has cooled in parallel. The Crypto Fear and Greed Index — a 0-to-100 gauge in which higher readings denote greater greed — has fallen from a high of 80 to 58, reflecting a shift away from strong optimism as prices correct.

Macro backdrop turns more supportive

The report argues that the macroeconomic backdrop has become somewhat more supportive than it was a few weeks earlier. According to the analysis, the latest Federal Reserve minutes did not change the baseline expectation that another rate increase would be delayed until at least December, while softer-than-expected August PCE inflation figures were cited as supporting that view. Rate expectations are a recurring focus for crypto market participants because they shape the liquidity environment for risk assets, though in this case expectations for a later rate hike have not prevented near-term profit-taking across the crypto market.

Technical outlook: bulls defend the $1.32 support

The daily chart places XRP near its 200-day exponential moving average — a long-term trend gauge many traders use to separate sustained trends from shorter-term swings — with analysts identifying approximately $1.32 as a potential rebound zone. A successful defense of that area could help stabilize the price. If selling accelerates, the next support lies near $1.26, a level that has previously attracted buyers and represents a deeper demand zone — another important test for the bulls.

Momentum has weakened, with the Relative Strength Index, a momentum indicator measured on a 0-to-100 scale, approaching 40, suggesting sellers retain the near-term advantage. The medium-term target of $1.80 remains in play, but reaching it would require renewed demand and a sustained recovery through the $1.60 resistance that halted the latest advance.

Source: CoinJournal