- XRP has come under pressure after ending its 80-week streak of institutional inflows, with a record $37.2 million outflow last week.
- Technical indicators show bearish signs and declining trading activity, suggesting caution as the price nears key support levels around $2.26.
XRP, is showing signs of strain after an impressive run of 80 consecutive weeks of inflows came to a halt. Currently trading at $2.28 at press time, XRP has dipped by 2.6% in the past 24 hours and remains confined within a tight range between $2.29 and $2.40 over the past week. This shift marks a significant change in investor sentiment and highlights broader market dynamics.
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End of a Long XRP Inflow Streak
According to a recent CoinShares report dated May 26, XRP-based investment products experienced a record outflow of $37.2 million last week. This outflow ended the long-standing streak of weekly inflows that had helped sustain XRP’s momentum for over a year and a half. Although month-to-date outflows total $28.6 million, year-to-date figures still show net positive inflows of $226 million, with $1.36 billion under management in XRP products.
The recent reversal appears tied to shifting institutional interest. Investors are increasingly favoring other digital assets, with Bitcoin leading last week’s inflows at $2.9 billion, followed by Ethereum with $326 million. Other altcoins such as Cardano, Sui, Solana, and Litecoin also recorded notable inflows, signaling a rotation in capital away from XRP.
Market Dynamics and Technical Indicators
The broader crypto market continues to attract substantial investments, with $3.3 billion in inflows last week alone and a record $10.8 billion year-to-date. CoinShares attributes this surge to rising treasury yields and economic concerns following Moody’s downgrade of the U.S. credit rating.
For XRP specifically, derivatives metrics suggest weakening speculative interest. Open interest dropped slightly by 0.8%, and derivatives trading volume fell by 8.48% to $2.87 billion. This decline points to reduced trading activity and a more cautious market stance.
From a technical standpoint, XRP appears to be consolidating with bearish signals emerging. The relative strength index (RSI) at 46.6 suggests neutral momentum but leaning towards weakness. The 10-day and 20-day exponential moving averages (EMAs) are below the current price, giving a “sell” signal. Additional indicators like the MACD and momentum indicators reinforce this downtrend.
The price is currently hugging the lower Bollinger Band, reflecting increased volatility and the possibility of a breakout — though the direction remains uncertain. Should XRP fall below the 100-day simple moving average near $2.28, a further drop towards the 200-day SMA at $2.26 could be expected.
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Outlook: Caution Advisable Amid Capital Rotation
Despite continued long-term institutional interest in XRP, short-term trends warn traders to exercise caution. A breach of current support levels might accelerate losses, especially as investors diversify into other altcoins. XRP’s immediate future hinges on its ability to maintain support and navigate this critical consolidation phase.
This shift in XRP’s inflow and price action underscores the evolving landscape of crypto investments as institutions seek new opportunities, emphasizing the importance of monitoring both technical and market-wide trends for strategic decisions.
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