XRP continued its downward move on Wednesday, trading near $1.34 and briefly touching $1.32, as profit-taking and a broader risk-off mood pressured the token. The pullback follows a sharp 72% surge in August that took XRP from $1.00 to $1.70, but momentum has since faded as traders locked in gains and the market searched for fresh catalysts.
Geopolitical tensions add pressure
Renewed tensions between the United States and Iran are creating headwinds for XRP and the wider cryptocurrency market. Investors are assessing the potential impact of strikes involving the two countries, which have contributed to selling across risk-sensitive assets. The Crypto Fear & Greed Index slipped to 71 on Wednesday from 74 the previous session, still in "Greed" territory but signaling growing caution. A further deterioration could intensify selling and push XRP below the psychological $1.30 level.
ETF inflows remain a bright spot
Despite the price weakness, institutional interest has not disappeared. According to CoinGlass, spot XRP ETFs recorded $14.38 million in net inflows on Tuesday, up from nearly $6 million the prior session. That marked the 11th consecutive day of positive flows, bringing cumulative inflows to $1.68 billion. The funds now hold approximately $1.44 billion in net assets. Continued ETF demand could help absorb some selling pressure and support XRP's eventual recovery.
Retail and derivatives activity, however, has cooled. Open interest in perpetual futures fell 2.5% over the past 24 hours to $3.04 billion, suggesting traders are trimming exposure.
Technical picture: resistance and support
XRP is trading below its 200-day exponential moving average (EMA) at $1.35, a key level that now acts as immediate resistance. The token also faces a descending trendline near $1.40, creating a concentrated zone of overhead supply. On the downside, the 50-day and 100-day EMAs are clustered near $1.22, providing the next major support area.
The 4-hour Relative Strength Index (RSI) sits near 40, indicating fading bullish momentum after August's powerful rally. The Moving Average Convergence Divergence (MACD) has moved into negative territory, reinforcing the possibility of further short-term weakness.
To reestablish a convincing bullish trend, XRP needs to reclaim both $1.35 and $1.40. A daily close below the $1.22 support zone would signal that buyers are losing control and could open the door to a deeper decline.
For now, sustained ETF inflows are helping offset some selling pressure, but the token remains in a corrective phase. Investors will be watching whether geopolitical tensions ease and whether institutional demand can continue to underpin the market. For broader context, Ethereum's resilience amid similar ETF inflows shows how institutional support can stabilize prices, while gold's reaction to Iran tensions highlights the risk-off environment affecting multiple asset classes.
This article is for informational purposes only and does not constitute financial advice.
