XRP retreated below $1.50 on Thursday, just a day after breaking through the $1.60 mark, as profit-taking overwhelmed continued inflows into US spot exchange-traded funds (ETFs). The token, which had surged to around $1.66 in the previous session, reversed sharply, turning what appeared to be a convincing breakout into a failed rally.
Despite the price drop, US spot XRP ETFs attracted another $18.04 million on September 23, bringing cumulative net inflows to approximately $1.75 billion. Bitwise accounted for $11.54 million of the latest inflow, while Franklin Templeton added about $6.50 million. However, these inflows were insufficient to absorb the selling pressure from a much larger spot market.
Supply wall at $1.60 triggers profit-taking
Crypto analyst Ali Martinez had earlier flagged $1.60 as a major resistance area, noting that on-chain data showed about 2.5 billion XRP had previously changed hands around that level, creating a significant cost-basis cluster where holders might be tempted to take profits. “That’s the next major level I’m watching for potential profit-taking,” Martinez said.
The warning proved prescient as XRP pushed through $1.60 and briefly reached around $1.66, but buyers failed to establish the former resistance zone as support. Breaking resistance intraday was only the first test; holding it was the more important one. Once XRP slipped back through $1.60, traders who had chased the breakout also had an incentive to exit.
ETF inflows not enough to counter selling
Institutional demand did not vanish during the reversal, but it was not enough to offset the broader selling. FXStreet analyst John Isige noted that XRP reserves on Binance had risen to about 2.68 billion tokens, suggesting investors were moving tokens to the exchange to trade or sell and lock in profits amid higher prices. While exchange deposits do not prove sales, they increase the amount of XRP available to trade.
The broader point is that ETF flows capture only one source of demand. Roughly $18 million of daily buying can still be overwhelmed by profit-taking across a much larger spot market.
Next test shifts to $1.43
The selloff now puts lower support levels back into focus. FXEmpire analyst Alejandro Arrieche wrote on Wednesday that selling pressure had increased above $1.50 and warned: “We could expect a retreat to $1.43 or so after such a strong rally.” He still viewed such a move as potentially temporary, but Thursday’s reversal makes that level more relevant.
Macro conditions have also become less supportive. Bitcoin slipped below $85,000 as rising Treasury yields pressured crypto and other risk assets. XRP’s next test is therefore no longer whether it can break $1.60. Holding roughly $1.43 to $1.45 may determine whether this becomes a healthy reset or a failed rally.
This article is for informational purposes only and does not constitute financial advice.
