XRP is currently trading around $1.28 as of October 24, following a notable drop from nearly $1.60 earlier this month. The token opened at approximately $1.294 but slid to a low of $1.272, marking a decline of about 1.1% during the trading session.
The broader market outlook appears weak for XRP as it has recently breached the rising trendline that had supported its recovery throughout August and September. This shift has brought the price perilously close to the critical support level of $1.251, a point that traders are closely monitoring.
Analyst Ash Crypto highlighted on social media that XRP has remained trapped below a significant resistance level for an extended period. He suggests that a successful breakout could pave the way for the token to reach $2.
Technical indicators further emphasize the bearish sentiment in the market. The daily Relative Strength Index (RSI) is recorded at 37.38, indicating that XRP is nearing oversold territory, but it remains above the critical 30 mark. Meanwhile, the Moving Average Convergence Divergence (MACD) is negative, reinforcing the notion that sellers currently dominate short-term momentum.
Looking at potential price action, if XRP manages to hold above the $1.251 support, there is a possibility of a rebound toward the $1.35 to $1.40 range. Conversely, a daily close below this support could lead to further declines, with $1.20 and the $1.10 to $1.15 range coming into play as potential targets.
XRP ETFs See Modest Inflows
On the institutional front, U.S. spot XRP ETFs reported net inflows of approximately $3.55 million on October 23, a welcome change following a week characterized by outflows. Franklin Templeton’s XRPZ accounted for the entirety of the day’s gains, bringing total assets across XRP ETFs to nearly $1.49 billion.
This uptick in ETF investment comes after a concerning period where around $2 million was withdrawn from these funds, breaking a 13-week streak of positive inflows. Cumulatively, these products have attracted about $1.8 billion since their inception.
Ripple, the technology behind XRP, continues to target institutional markets. Recent partnerships include collaborations with DriveWealth and Korea’s Meritz Securities, aimed at expanding their reach in real-world asset trading. Additionally, Standard Chartered is set to provide custody solutions for Ripple’s RLUSD.
Meanwhile, the XRP Ledger is gearing up for a lending infrastructure update, with the introduction of LendingProtocolV1_1 in version 3.4.0. This update enables closed-ended vaults and cash-basis accounting, although the broader lending upgrade still requires validator support for activation.
Despite some delays due to a drop in validator support, the network remains operational, and the upcoming fixes are primarily timing-related rather than a sign of systemic issues.
XRP Ledger Activity Shows Mixed Signals
In terms of on-chain activity, the XRP Ledger processed around 3.6 million transactions within a 24-hour window, with approximately 43,400 active addresses. New address creation also maintained momentum, with over 5,000 new wallets being established. The DeFi Total Value Locked (TVL) is sitting at about $38.8 million, while decentralized exchange (DEX) volume hovers around $6.25 million daily.
However, liquidity appears to be weakening, as the stablecoin supply on the ledger decreased by approximately 5.6% over the past week, reaching $1.06 billion. Additionally, weekly DEX volume has also seen a decline.
Notably, tracked exchange wallets reported a loss of about 16.5 million XRP over the week leading up to October 23, suggesting that coins are not flooding onto exchanges for immediate sale.
For XRP to regain upward momentum, it will need to reclaim the $1.35 to $1.40 range. A sustained move above this level could open the door to further resistance at $1.50, and potentially the $1.55 to $1.67 zone.
As XRP trades near $1.28, all eyes will be on the $1.251 support level, which could dictate the token’s immediate future.
