- XRP has fallen below $1.40 as selling pressure and weak market sentiment raise the risk of a drop to $1.28.
- Despite continued ETF inflows, traders are watching key support levels for signs of further losses or a recovery.
XRP has fallen below the $1.40 support level, raising the risk of further losses as selling pressure intensifies. After dropping from $1.50 to a low of $1.32, XRP rebounded to around $1.38 early Friday but remains under bearish pressure.
The decline comes as a broader crypto market sell-off, rising US Treasury yields and higher oil prices weigh on investor sentiment. With several support levels now broken, traders are watching $1.28 as a potential downside target if selling continues.
XRP Price Breaks Key Support Levels
XRP’s latest decline has weakened its short-term technical outlook. It closed around $1.42 on October 7 after losing roughly 5%, before falling to $1.32 the following day.
The drop pushed XRP below $1.45, $1.40 and $1.37. These levels could now act as resistance if buyers attempt to push the price higher.
Analyst John Isige said XRP’s path of least resistance remained downward, citing bearish momentum signals and rising exchange reserves.
XRP balances on Binance had increased to approximately 2.64 billion tokens. Higher exchange reserves can indicate that more supply is available for potential selling, although they do not confirm that holders will sell.
Broader market conditions have also added pressure. Bitcoin fell below $83,000 during Thursday’s sell-off, while Brent crude settled above $104. Elevated US Treasury yields have further weighed on appetite for riskier assets, including cryptocurrencies.
XRP ETF Inflows Fail to Stop the Sell-Off
Despite the price decline, institutional demand for XRP exposure has continued. US spot XRP exchange-traded funds recorded $3.14 million in net inflows on October 6, bringing cumulative inflows to approximately $1.79 billion.
However, XRP continued to lose ground despite the positive fund flows. This suggests that ETF demand has not been strong enough to offset selling pressure in the spot market.
The divergence between ETF inflows and price performance remains an important factor for traders. While fund inflows indicate continued demand for XRP exposure, they do not guarantee immediate price gains.
Investors are also monitoring Evernorth Holdings after the company delayed its planned Nasdaq debut under the XRPN ticker. The listing, initially expected on October 8, was pushed back to around October 12 because of an administrative issue.
Evernorth expects its business combination with Armada Acquisition Corp. II to close around October 9. The company plans to hold approximately 473 million XRP at closing.
Although the delay does not change Evernorth’s long-term XRP strategy, it removes a near-term event that traders had been watching. For now, continued institutional interest has done little to improve XRP’s short-term price action.
Can XRP Fall to $1.28 Next?
The $1.33 area is the next important level for buyers to defend. If XRP falls below this zone, the price could move towards the $1.27-$1.30 range, placing $1.28 in focus as a potential downside target.
Crypto analyst EGRAG Crypto identified $1.32-$1.27 as a deeper downside zone. The analyst also noted that a daily close above $1.4850 would increase the possibility that the recent breakdown was a false move rather than the start of a sustained decline.
A recovery above $1.40 would be an initial step towards repairing the damaged technical structure. However, XRP would need to reclaim additional resistance levels before a stronger recovery could take shape.
Not all analysts expect the decline to continue without interruption. Cryptoinsightuk pointed to deeply oversold momentum on the four-hour chart as a possible trigger for a relief rally. The analyst also highlighted the area above $1.30 as a potential accumulation zone.
Still, oversold conditions alone do not confirm that a price bottom is in place. Cryptoinsightuk warned that XRP could fall towards $1.22 if the current trading range fails.
XRP Traders Watch for a Recovery Signal
XRP now faces a critical test as sellers attempt to extend the recent decline. Holding above $1.33 could help limit further losses, while a break below that level would bring the $1.28 support zone into sharper focus.
ETF inflows and Evernorth’s planned XRP holdings offer evidence of continued institutional interest, but neither has reversed the current selling pressure. Until XRP reclaims important resistance levels, the risk of another move lower remains.
For traders, the key question is whether buyers can defend the next support zone or whether renewed selling will push XRP towards $1.28 and potentially $1.22.
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