XRP has extended its decline, shedding 3.4% in the last 24 hours and bringing its weekly loss to approximately 16%. Over the past month, the token has lost about 23%, making it the weakest performer among the top ten cryptocurrencies by market capitalization. The selling pressure comes amid political uncertainty, institutional withdrawals, and a deteriorating macroeconomic backdrop.
ETF outflows hit eight-month high
Institutional demand for XRP has weakened significantly. According to SoSoValue, XRP exchange-traded funds recorded $10 million in net outflows on Monday, the largest single-day withdrawal since March 2026. Another $7.62 million left the funds on Tuesday, following four consecutive trading days of no net activity. If the month ends with net withdrawals, it would mark the third consecutive month of declining flows, signaling that institutional investors are growing increasingly cautious about XRP's near-term prospects.
Persistent outflows can dampen market sentiment and add to selling pressure, especially when the underlying asset is already in a sharp correction. The trend mirrors broader weakness in digital asset ETFs, as investors reassess risk exposure amid tighter monetary policy expectations.
Macro headwinds intensify
Macroeconomic conditions have added another layer of difficulty for XRP. The latest October Consumer Price Index report showed core inflation rising 0.3% month-over-month, exceeding the 0.2% consensus estimate. The stronger-than-expected reading has prompted investors to adjust their Federal Reserve rate outlook ahead of the December policy meeting. CME Group's FedWatch data indicates a 12% probability of a 50-basis-point rate hike, a scenario that would likely strengthen the dollar and pressure risk assets like cryptocurrencies.
Technical outlook: $1 support in focus
On the daily chart, XRP has reached the midpoint of its remaining fair value gap (FVG), a key support zone tied to previous price imbalances. This area could attract buyers attempting to defend the market. However, if selling pressure persists, the gap may be fully filled, exposing XRP to further downside. The next major support sits at $0.98; a break below that level could open the door to a deeper correction.
Despite the bearish setup, momentum indicators suggest a short-term recovery is possible. The daily Relative Strength Index (RSI) has entered oversold territory at 25, and the Stochastic indicator is also deeply oversold at 8.75. These conditions often prompt buyers to step in, potentially driving a bounce toward the first major resistance at $1.113, the previous day's high. An extended rally could target $1.30, but that would require a shift in institutional demand and macroeconomic conditions.
For now, the path of least resistance appears lower, with $1 serving as a psychological and technical battleground. Traders will closely monitor whether the oversold signals can spark a rebound or if the bearish momentum continues to dominate.
This article is for informational purposes only and does not constitute financial advice.
