XRP (Ripple), Emergency to Defend $1..."ETF's $1.4 Billion Inflow Couldn't Stop Selling Bomb"

▲ XRP/AI generated image

Despite network growth and spot ETF demand, XRP (XRP) has been pushed towards the $1 defense line, revealing cracks in investor sentiment. While new wallet growth and institutional fund inflows are still alive, the price remains below the 50-day, 100-day, and 200-day exponential moving averages, failing to escape a short-term bearish trend.

According to cryptocurrency specialized media FXStreet on June 30 (local time), XRP maintained above the psychological support level of $1 on Tuesday but faced downward pressure amidst a bearish trend that has continued since mid-June. FXStreet reported that despite increased XRP Ledger (XRPL) activity and institutional fund inflows, the price failed to rebound amidst ongoing risk-off sentiment across the broader cryptocurrency market.

According to Santiment data, daily new wallet creations on the XRP Ledger approached 5,000, a level not seen in the past three months. FXStreet analyzed that investor participation remains strong despite price pressure around $1, and market participants are utilizing the area around the key psychological support level as a buy-the-dip zone.

Market sentiment around $1 has also leaned bullish. Santiment analysts stated, "Part of this optimism stems from XRP's familiar history of rebounds, the ongoing narrative of ETFs and institutional investment, and the idea that large holders have continued to increase their exposure despite weak price movements." More than $15 million flowed into US-listed XRP spot ETFs on Monday, with cumulative inflows totaling $1.48 billion and net assets at $972 million.

The technical trend remains sell-dominant. XRP traded at $1.04, falling below the 50-day exponential moving average of $1.20, the 100-day exponential moving average of $1.31, and the 200-day exponential moving average of $1.52. According to Bollinger Bands, it also stayed below the midline of $1.12, positioned close to the lower support line of $1. The histogram of the Moving Average Convergence Divergence (MACD) on the daily chart is slightly in negative territory, and the Relative Strength Index (RSI) is around 32, indicating weak demand and limited oversold conditions.

Upper resistance levels were presented in the order of $1.12, $1.24, $1.31, and $1.52. FXStreet pointed out that if XRP forms a daily close below its current trading range of $1.04, it could head towards the Bollinger Band's lower support line of $1. As long as the price remains below key moving averages despite network growth and ETF fund inflows, the short-term key for XRP boils down to whether it can defend $1.

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[Article Key Summary]

-XRP was pushed close to the psychological support level of $1 despite increased new wallet creation and inflows into US-listed XRP spot ETFs.

-Daily new wallet creations on the XRP Ledger approached 5,000, and cumulative inflows into XRP spot ETFs totaled $1.48 billion.

-Technically, XRP fell below all 50-day, 100-day, and 200-day exponential moving averages, raising the possibility of retesting $1 if it breaks below $1.04.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*