"This is a crossroads"...XRP, warning of sharp decline if it fails to surpass $1.40

▲ Ripple (XRP) ©

Despite strong positive news of institutional fund inflows, XRP (Ripple) is at a crossroads regarding its recovery to $1.40, increasing tension about its short-term direction.

According to investment specialized media FX Leaders on April 29 (local time), XRP is currently fluctuating between $1.38 and $1.40, showing a limited rebound after breaking away from a key support level. While technical recovery attempts continue in the short term, the market structure remains unstable.

The most notable change is institutional fund flows. In April 2026, XRP spot ETFs recorded the strongest inflows, with total assets under management exceeding $1.5 billion. Weekly inflows of approximately $55 million continued, quickly reversing the outflow trend of March. Goldman Sachs already holds a position worth $153.8 million, and it was revealed that 18% of institutional investors hold XRP, with 25% planning additional purchases this year.

Positive signals are also continuing on the market infrastructure front. Ripple has expanded cross-border payments through a partnership with South Korea's K Bank and is pursuing a tokenized national bond settlement project with Kyobo Life Insurance. The supply of RLUSD stablecoin has also expanded to approximately $1.6 billion, contributing to improved XRPL liquidity. Furthermore, with the resolution of the U.S. Securities and Exchange Commission (SEC) issue and ongoing discussions on the U.S. cryptocurrency market structure bill, the Clarity Act, the regulatory environment is gradually improving.

However, the technical trend remains conservative. XRP is attempting a rebound after breaking below $1.40, but it remains below the 50-day and 200-day moving averages, failing to escape the downtrend. After encountering resistance in the $1.425-$1.43 range, downward pressure continued, and the recent rebound in the $1.36-$1.38 range is also analyzed as a temporary rebound rather than a trend reversal.

The key variables in the current market are clear. Upper resistance is compressed to $1.40-$1.445, and lower support levels are $1.383 and $1.36. In the short term, if it fails to recover $1.40, the possibility of retesting $1.36 is open. Conversely, if ETF fund inflows and policy momentum align, an upward breakout scenario remains valid. The market has entered a phase where it is highly sensitive to FOMC results and news related to the Clarity Act.

*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.*