Ripple Price Forecast: XRP sell-off intensifies amid wobbly institutional interest
Ripple (XRP) losses are deepening below the $1.40 pivotal level and is trading at $1.37 at the time of writing on Thursday.
  • XRP extends sell-off to $1.37, falling alongside the broader cryptocurrency market on Thursday.
  • XRP trades within a broadening bearish structure, defined by descending major moving averages.
  • XRP ETFs see mild inflows of $1.21 million amid persistent risk-off sentiment.

Ripple (XRP) losses are deepening below the $1.40 pivotal level and is trading at $1.37 at the time of writing on Thursday. The decline is part of a persistent drawdown from the weekly high of $1.61, reached on March 17, and aligns with a broader crypto market sell-off driven by macroeconomic uncertainty and geopolitical tensions, especially in the Middle East.

XRP sees mild capital inflows as risk-off sentiment persists

Interest in XRP digital investment products remains on shaky ground, as observed through the uptake of spot Exchange-traded Funds (ETFs). Despite inflows extending for consecutive days, they have been significantly low at $1.12 million on Wednesday and $1.4 million on Tuesday.

On Monday, activity remained quiet, with no flows recorded. SoSoValue data shows that there were only two days of inflows last week, where US-listed ETFs received $1.98 million on Friday and nearly $5 million on March 17.

Meanwhile, total assets under management have slipped to approximately $996 million, down from $1.65 billion at the beginning of the year, and cumulative inflows average $1.21 billion.

XRP ETF flows | Source: SoSoValue

Persistent risk-off sentiment indicates a lack of confidence in XRP’s recovery potential or the token’s ability to sustain rallies. If this outlook persists, rebounds will continue to be absorbed by increasing supply, as investors reduce their risk exposure.

Technical outlook: XRP sellers tighten their grip

XRP sellers are largely in control, pushing the price downward to $1.37 at the time of writing on Thursday. The near-term bias is mildly bearish as XRP extends the pullback from the recent spike around $1.54 and holds well below the downward-curving 50-day, 100-day and 200-day Exponential Moving Averages (EMAs), which cluster above $1.48 and maintain a broader downward trend.
The rising support trendline from $1.12 has been broken, suggesting fading buying interest after the sharp mid-month advance. Similarly, the Moving Average Convergence Divergence (MACD) indicator has slipped marginally below its signal line on the daily chart, confirming waning bullish momentum. The Relative Strength Index (RSI) around 43 remains below the 50 midline on the same chart, reinforcing a bearish tone.

XRP/USDT daily chart

Initial resistance appears at the pivotal $1.40 threshold and the supply area at $1.43, where recent rebounds stalled. A stronger hurdle lies near the 50-day EMA at $1.48, followed by the $1.54 area. Above that area, the 100-day EMA at $1.66 would come within the scope. On the downside, immediate support lies at the weekly low of $1.36, with a clear break lower opening the door toward $1.32 as the next key demand zone.

Crypto ETF FAQs

An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.

Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.

Yes. The SEC approved in January 2024 the listing and trading of several Bitcoin spot Exchange-Traded Funds, opening the door to institutional capital and mainstream investors to trade the main crypto currency. The decision was hailed by the industry as a game changer.

The main advantage of crypto ETFs is the possibility of gaining exposure to a cryptocurrency without ownership, reducing the risk and cost of holding the asset. Other pros are a lower learning curve and higher security for investors since ETFs take charge of securing the underlying asset holdings. As for the main drawbacks, the main one is that as an investor you can’t have direct ownership of the asset, or, as they say in crypto, “not your keys, not your coins.” Other disadvantages are higher costs associated with holding crypto since ETFs charge fees for active management. Finally, even though investing in ETFs reduces the risk of holding an asset, price swings in the underlying cryptocurrency are likely to be reflected in the investment vehicle too.

(The technical analysis of this story was written with the help of an AI tool.)

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