Why XRP Keeps Falling Despite Positive ETF Inflows

The cryptocurrency market has continued its negative performance this week, with Bitcoin, Ethereum, and $XRP extending their losses. Bitcoin briefly touched the $61,100 level, while Ethereum risks dropping below $1,500 in the near term. Meanwhile, Ripple's $XRP is trading around $1.11 on Friday, marking its lowest level since February 6 and extending its losing streak to six consecutive sessions. The decline reflects continued weakness across the broader crypto market amid heightened geopolitical uncertainty and fading investor confidence.

$XRP ETF inflow resumes, but price action remains weak. Institutional flows into $XRP investment products have flipped positive, with approximately $4 million in inflows recorded on Thursday. This came after $5 million in outflows the previous day. The Wednesday outflow was the first since April 30, suggesting institutional interest in $XRP remains strong despite the current bearish price action. Outflows on a Wednesday, inflows on a Thursday — the institutions are clearly not consulting each other.

Cumulative figures still show strong longer-term participation. Total inflows into $XRP ETFs stand at $1.5 billion, with assets under management above $1 billion. The shift suggests that weak short-term sentiment didn't last, as investors remain bullish on $XRP. If inflows persist, it could pave the way for $XRP to rally once the market selloff ends. For now, however, $XRP is approaching the critical $1.0 support level, which could send it toward lower demand zones.

Market participants continue to reduce exposure to risk assets as geopolitical tensions — particularly between the United States and Iran — fuel uncertainty across global markets. Due to current macroeconomic conditions, investors are moving funds away from volatile assets like cryptocurrencies and toward safer instruments such as bonds, gold, and cash equivalents. CoinMarketCap data reinforces this cautious positioning, with the Crypto Fear & Greed Index sitting at 17 (Extreme Fear), down sharply from 50 in May. A reading of 17 is, historically, where bottoms tend to form — though the market has historically been bad at recognizing them.

$XRP technical outlook: $XRP remains under heavy selling pressure. Like Bitcoin and Ethereum, the $XRP/USD 4-hour chart shows a clearly bearish structure, with $XRP continuing to trade below key long-term trend indicators. At press time, $XRP is trading at $1.116, below the 50-day, 100-day, and 200-day EMAs. Meanwhile, the SuperTrend resistance sits at $1.34, capping recovery efforts in the near term.

The technical indicators also point to an oversold condition. The Relative Strength Index of 30 means $XRP has officially entered oversold territory. The MACD histogram remains negative, confirming downward momentum. While oversold conditions may slow the pace of decline, they have not yet triggered a meaningful reversal.

If market conditions improve, the bulls would encounter the first major resistance at $1.34, which coincides with the Transactional Liquidity (TLQ) level on the 4-hour chart. A daily candle close above this level could see $XRP target higher resistance levels at $1.36 (50-day EMA), $1.44 (100-day EMA), and $1.64 (200-day EMA). A sustained recovery above these levels would be required to shift the broader bearish outlook.

However, if the selloff persists, $XRP could drop below the $1.0 psychological level. A decisive break below this level could pave the way for accelerated downside pressure in the near term.