Ripple (XRP) is trending lower toward the key $1.35 support level at the time of writing on Friday, following a failed attempt to break above $1.39 the previous day. Despite the dominant pressure, capital inflows continue through related digital investment products while investors appear intent on withdrawing their holdings from exchanges.
XRP ETF inflows stand out amid fading exchange reserves
Institutional interest in XRP has remained mild but steady this week, with total inflows into spot Exchange-Traded Funds (ETFs) averaging $12.57 million through Thursday. This marks the third consecutive week of inflows, reinforcing steady demand for US-listed XRP investment products. Meanwhile, Cumulative inflows stand at $1.39 billion, with net assets under management averaging $1.15 billion.
XRP holders, on the other hand, are increasingly withdrawing their assets from exchanges, as evidenced by the token’s balance on Binance falling to 2.74 billion on Thursday, from a May high of 2.78 billion. A decline in exchange reserves is typically viewed as bullish, since it limits the circulating supply available for sale and often indicates that investors are opting to hold XRP rather than trade it.
Price analysis: XRP holds key support
XRP trades at $1.36, maintaining a bearish near-term bias as price holds beneath the cluster of key moving averages. The 50-day Exponential Moving Average (EMA) at $1.41, the 100-day EMA at $1.48 and the 200-day EMA at $1.70 all sit overhead, suggesting rallies are likely to be capped while the pair trades below these trend barriers.
The Relative Strength Index (RSI) near 42 on the daily chart hints at lingering downside pressure without yet reaching oversold conditions. At the same time, the Moving Average Convergence Divergence (MACD) histogram remains below zero on the same chart, and its recent deterioration suggests momentum continues to favor sellers in the short term.
On the topside, immediate resistance lies at the former rising trendline around $1.41, coinciding with the 50-day EMA. Above that, the 100-day EMA at $1.48 marks the next significant barrier before the longer-term bearish cap at the 200-day EMA near $1.70. If XRP extends its decline below the near-term $1.35 support, the next key demand area lies at $1.30, where buyers could seek lower entries.
(The technical analysis of this story was written with the help of an AI tool.)
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