XRP’s price was down 2.35% over the past 24 hours, trading at around the $1.90 level at press time.
However, market participation increased during the same period, with trading volume jumping more than 15% to $3.31 billion.
Rising volume during a price decline suggests heightened participation, often reinforcing the prevailing trend.
XRP price action and key level to watch
Amid this uncertainty, AMBCrypto’s technical analysis of the daily chart revealed that XRP was at a make-or-break level of $1.90, which acted as a strong support for the asset.
Historically, whenever the price has revisited this level, it has recorded a strong upside move—something that has occurred more than five times.
Based on the current price action, if XRP manages to sustain above this key support level, it could see a price uptick similar to past moves.
On the other hand, if the asset fails to hold this support, it could experience a sharp price decline of around 27%, potentially falling to the next support level near $1.31 in the coming days.
As of now, the asset is trading below the 50-day Exponential Moving Average (EMA), indicating continued downside pressure and weak short-term momentum.
Mixed sentiment among traders and investors
However, on an intraday basis, both traders and investors appeared to have a bearish outlook, according to data from the derivatives platform CoinGlass.
Over the past 24 hours, investors have moved a massive $8.15 million worth of XRP to exchanges, potentially in preparation for a sell-off.
At the same time, traders were heavily betting on short-leveraged positions.
According to the XRP Exchange Liquidation Map, traders are over-leveraged at $1.869 on the downside, where they have built $24.46 million worth of long positions.
Meanwhile, $1.947 represents another over-leveraged level, with $37.85 million in short-leveraged positions.
This indicates that current intraday market sentiment among traders remains bearish.
The persistent inflows into spot XRP Exchange-Traded Funds (ETFs) have come to an end, as sentiment appeared to be worsening.
XRP ETF outflows hit $54 mln
On the 19th of January, when the broader market struggled to gain momentum, a massive $53.32 million outflow was recorded from spot XRP ETFs, as per SoSoValue.
In ETFs, outflows indicate the withdrawal of capital from these funds and are considered a bearish signal. This reflects fading interest and declining confidence in the underlying asset among Wall Street investors and institutions.
However, this outflow stands out, as it followed a prolonged period of consistent inflows and marks only the second outflow since launch.
According to SoSoValue, spot XRP ETFs have never experienced any major outflows, recording just two outflows in their entire history.
Final Thoughts
- XRP’s price action suggests that the current level represents a make-or-break zone, as it has a strong history of reversals.
- Spot XRP ETFs recorded their second outflow of $53.32 million, pointing to fading institutional interest.
