XRP is currently trading near $1.40, a critical support level that bears are eager to challenge. After a brief respite earlier in the week, the token has surrendered ground as sellers step back into the driver’s seat, marked by negative momentum indicators on technical charts.
Analysis of the 4-hour chart reveals a forming descending triangle, characterized by a series of lower highs constraining down on a flat support line. This technical setup often heralds further downside if the support failing to hold.
The MACD, a key momentum indicator, recently crossed below its signal line, with growing red histogram bars indicating that bearish momentum is gathering pace. Meanwhile, the Relative Strength Index (RSI) has dipped to around 40, reflecting a waning interest from buyers.
The $1.40 level has come under pressure following multiple testing sessions, and history suggests that repeated attempts to maintain support can lead to its eventual breakdown. If XRP falters below this key level, traders will turn their attention to subsequent support points at $1.38, $1.36, and down to $1.34 should selling pressure persist.
Resistance Levels to Monitor
For any bullish momentum to return, XRP must reclaim the $1.43 mark. A more formidable resistance is positioned at $1.45, coinciding with the descending trendline. A breach above this critical threshold could pave the way for seeking $1.50.
In stark contrast to XRP’s limited 5% gain over the past month, dominant players Bitcoin and Ethereum have enjoyed notable price increases of 17% and 16%, respectively, highlighting a preference among investors for higher-quality assets.
Adding to the intrigue, noted analyst Ali Charts commented that XRP is “ready for a big price move,” potentially eyeing a cycle bottom around $1.30. Historical patterns reveal that when XRP’s weekly RSI dips below critical thresholds, significant price surges often follow.
Analysts at FX Empire suggest that if the cycle bottom is indeed at $1.30, there could be a pathway to $1.50 in the short term, followed by even higher targets around $1.65.
XRP ETFs Continue to Attract Interest
Despite current volatility, XRP-linked ETFs recorded inflows between $15.74 million and $25 million last week, underscoring sustained institutional interest with year-to-date inflows accumulating to a strong $148 million. This trend is significant as it showcases continued demand for XRP amid a competitive market.
In a broader crypto context, Bitcoin ETFs led the charge with a staggering $824 million influx, marking four consecutive weeks of positive flows. Ethereum ETFs added $155 million, while Solana saw a smaller increase of $9.44 million.
Overall, the cryptocurrency ETP market witnessed total inflows of $1.2 billion last week, as reported by industry sources. Meanwhile, the Crypto Fear and Greed Index has dipped to 44, down from a recent peak of 62, indicating a shift in market sentiment.
Attention turns to the upcoming FOMC meeting on April 28, where market participants expect no interest rate changes, and analysts predict that no rate cuts will occur throughout the remainder of the year.
