XRP tests the $1.32 support level as ETF demand slows

Key takeaways

• XRP has declined by nearly 7% over the last seven days after failing to clear resistance at $1.60.
• Daily trading volume remains steady at approximately $3 billion, representing roughly 4% of the token’s circulating market capitalization.
• Inflows into XRP ETFs have dropped significantly, pulling in just $4 million so far in October compared to $121.4 million in September.

After failing to breach the $1.60 resistance level, XRP has retraced by nearly 7% over the past week. Market participants are now closely monitoring nearby support levels to see if the correction will find a bottom.

While daily trading volume remains robust at approximately $3 billion, buyers are facing headwinds due to a sharp drop-off in ETF inflows and an increase in token transfers to cryptocurrency exchanges.

This downward movement mirrors a broader cooling of sentiment and general weakness across the wider cryptocurrency market following its recent upward trend.

XRP ETF inflows slow sharply in October

According to data from SoSoValue, exchange-traded funds tied to XRP brought in $121.4 million in net inflows during September.

However, momentum has slowed dramatically in October, with investors adding only about $4 million so far. If this current pace continues, monthly inflows are projected to reach roughly $17 million, though the final total will depend on market activity during the remaining days of the month.

While this drop-off indicates a cooling of institutional interest through fund vehicles, it does not mean investors are actively pulling money out, as cumulative net flows for October remain in positive territory.

Even so, the reduction in ETF buying pressure deprives XRP of a key supportive catalyst as it searches for a price floor.

On-chain metrics reveal that XRP transfers onto exchanges have surged over the past two weeks, hitting their highest point since July 2026.

A similar spike in exchange deposits previously occurred alongside a price drop from roughly $1.14 to $1.00. Analysts suggest the current rise in deposits could signal another impending wave of selling pressure.

While moving assets to exchanges often suggests preparation to sell, it does not guarantee that transactions have occurred, as these transfers can also be used for collateral, trading, or other purposes.

Nevertheless, because XRP is currently pulling back from key resistance, these rising inflows are fueling anxieties that early buyers may be preparing to lock in profits.

This shift in sentiment is reflected in the Crypto Fear and Greed Index, which has slid from a recent high of 80 down to 58, indicating a transition away from extreme optimism as the market corrects.

On the macroeconomic front, the report notes that conditions have become slightly more favorable than in previous weeks. The latest Federal Reserve minutes did not alter the consensus expectation that any further interest rate hikes will be postponed until December at the earliest.

This outlook was further bolstered by August’s personal consumption expenditures (PCE) inflation data, which came in softer than anticipated.

Despite these supportive macroeconomic signals, the anticipation of delayed rate hikes has not been enough to prevent short-term profit-taking across the digital asset space.

XRP technical outlook: Bulls hold the $1.32 support

On the daily chart, XRP is trading close to its 200-day exponential moving average (EMA), with analysts pointing to the $1.32 level as a crucial zone for a potential rebound.

Defending this $1.32 mark could help the cryptocurrency stabilize. However, if selling pressure intensifies, the next line of defense is expected around $1.26, a price point that has previously seen buying interest.

Below that threshold, the $1.26 level serves as a deeper area of demand and will act as another critical test for buyers.

Near-term momentum favors sellers, as the Relative Strength Index (RSI) is trending downward toward 40.

While the medium-term target of $1.80 remains a possibility, reaching it will require a fresh surge in buying volume and a decisive break above the $1.60 resistance level that capped the asset’s recent rally.