XRP tests the $1.32 support level as ETF demand slows

Key takeaways

• XRP has dropped nearly 7% over seven days following a failed attempt to overcome resistance at $1.60.
• Trading volume holds steady near $3 billion, which represents approximately 4% of its circulating market capitalization.
• XRP ETFs have pulled in just $4 million so far in October, down significantly from $121.4 million in September.

XRP has shed close to 7% over the past week as a recent rally stalled short of $1.60, prompting traders to monitor nearby support levels for signs of a stabilizing correction.

While trading activity stays strong at roughly $3 billion, reduced inflows into investment funds and a rise in token transfers to exchanges indicate a tougher environment for buyers.

This pullback coincides with widespread weakness across the wider cryptocurrency market alongside waning sentiment following the recent price climb.

XRP ETF inflows slow sharply in October

Exchange-traded funds tied to XRP brought in $121.4 million in net inflows throughout September, based on SoSoValue data referenced in the market report.

Investors have contributed only about $4 million thus far in October. Based on that trajectory, the report projects monthly inflows to reach roughly $17 million, though the final figure relies on market demand during the remaining trading days.

This deceleration highlights a drop in purchasing through investment funds. However, it does not mean investors are pulling out capital, as cumulative flows for October remain positive.

Even so, the decline in ETF demand removes a crucial pillar of support while XRP tries to establish a bottom.

Onchain metrics reveal that XRP deposits flowing into exchanges have picked up speed over the last fortnight, reaching their highest peak since July 2026.

A prior increase in deposits aligned with a price drop from roughly $1.14 down to $1.00. Analysts note that this latest surge in exchange deposits could precede another wave of selling pressure.

Although moving assets to exchanges often signals that holders intend to sell, it does not guarantee immediate liquidation, as certain deposits might be used for trading collateral or other utility.

Nevertheless, with XRP pulling back from overhead resistance, these higher inflows heighten worries that early investors are cashing out profits.

Meanwhile, the Crypto Fear and Greed Index has dropped from an earlier peak of 80 down to 58, illustrating a cooling of high optimism as prices correct.

The report suggests the broader macroeconomic environment has turned slightly more favorable than it appeared weeks prior, noting that recent Federal Reserve meeting minutes left intact expectations that any upcoming rate hike will likely be postponed until December at the earliest.

Analysts pointed to milder-than-anticipated August PCE inflation data as reinforcement for that outlook.

Even so, expectations for a delayed rate increase have not stopped near-term profit-taking throughout the digital asset sector.

XRP technical outlook: Bulls hold the $1.32 support

On the daily timeframe, XRP trades close to its 200-day exponential moving average, with analysts highlighting the $1.32 mark as a likely zone for a potential rebound.

Successfully defending this area could allow the price to steady. If downward momentum picks up, the next line of defense sits near $1.26, a threshold that has historically drawn interest from buyers.

Beneath that, the $1.26 level serves as a deeper demand zone and a critical test for market bulls.

Price momentum has softened, with the Relative Strength Index drifting toward 40, indicating that sellers maintain the upper hand in the short term.

Although a medium-term target of $1.80 remains a possibility, achieving it will demand fresh buying pressure and a sustained recovery past the $1.60 resistance barrier that thwarted the most recent upward push.

Frequently Asked Questions

Why is XRP declining in price?

XRP has retreated nearly 7% over the past week after failing to break through the $1.60 resistance level, combined with a broader market pullback and slowing ETF inflows.

How much have XRP ETFs brought in during October?

XRP-linked exchange-traded funds have attracted approximately $4 million in October so far, marking a dramatic slowdown compared to the $121.4 million recorded in September.

What are the critical support levels for XRP?

Analysts are closely watching the $1.32 support area near the 200-day exponential moving average. If that level fails to hold, the next significant support zone is located around $1.26.

What does the rise in exchange inflows mean?

Increased transfers of XRP to exchanges over the past two weeks reach levels not seen since July 2026, which can signal that holders are positioning themselves to sell, though it does not guarantee completed trades.