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▲ XRP/AI-generated image
XRP is holding onto a key support line despite signs of capitulation and bearish sentiment. With investors facing increasing unrealized losses weighing on the market, ETF inflows and the defense of the lower support line have emerged as the last variables for a short-term recovery.
According to crypto-specialized media FXStreet on May 29 (local time), XRP saw a slight rebound amid a general stabilization in the cryptocurrency market, but investor sentiment remains strongly subdued. FXStreet reported that Middle East conflicts and global oil and gas supply concerns are limiting the overall preference for risk assets in the market.
On-chain indicators pointed to a capitulation phase. According to Glassnode, XRP's Net Unrealized Profit/Loss (NUPL) fell to -0.06 on Thursday, remaining in negative territory. When NUPL drops into negative territory, it means more investors are in an unrealized loss state, indicating an ongoing capitulation trend driven by bearish sentiment, while also suggesting the possibility of a market bottom forming.
ETF flows provided limited but crucial support. On Thursday, $1.77 million flowed into the XRP spot ETF, continuing a gentle net inflow trend since May 14. Cumulative inflows totaled $1.41 billion, and net asset under management was $1.12 billion. FXStreet analyzed that suppressed inflows could support the short-term outlook, but the overall structural weakness of the cryptocurrency market might limit the extent of the rebound.
Technical trends still show selling dominance. XRP remains below the $1.39 mark, where the Bollinger Band midline and the 50-day Exponential Moving Average (EMA) converge, indicating an upward barrier. The daily Relative Strength Index (RSI) is around 39, and the Moving Average Convergence Divergence (MACD) histogram is in negative territory, showing that selling pressure persists despite recent stabilization.
On the upside, the $1.38 to $1.39 range was presented as the primary resistance level, followed by $1.46 (where the 100-day EMA is located), and $1.49 (the upper Bollinger Band) as subsequent resistance zones. The $1.66 level, where the 200-day EMA resides, is a stronger barrier in the medium term. On the downside, $1.28, the lower Bollinger Band, was suggested as immediate support, and FXStreet reported that a clear break below this price could lead to an expansion of the bearish trend.
*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.*
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