XRP is trading near $1.42 following a sharp pullback that reversed much of its recent momentum, even as institutional demand through spot ETFs remains robust.
The decline came after XRP rallied nearly 70% over two weeks, approaching $1.70 and attracting heavy leveraged positioning. When market sentiment shifted, the unwind was swift, with over $20 million in long positions liquidated and net buyer volume turning negative at -$96 million.
ETF Inflows Strengthen Despite Price Pullback
XRP spot ETFs recorded $28.14 million in net inflows on August 26, marking their strongest single-day performance in more than seven months. Total fund inflows remain near $1.62 billion, indicating sustained institutional interest despite the volatile price action.
Key Support Level Under Scrutiny
The $1.40 level has emerged as critical support for XRP. Holding above this zone would keep the broader uptrend intact, particularly given ongoing ETF inflows. A break below $1.40 could trigger deeper losses, as open interest has climbed above $3.4 billion, reflecting a crowded market vulnerable to further volatility.
XRP's near-term direction likely depends on whether buyers defend the $1.40 support level. If held, a retest of the $1.60–$1.70 range could follow, while a breakdown risks accelerating selling pressure.
