XRP Price Breaks Below $1.40 Support as Risk-off Sentiment Persists

Highlights:

• XRP price has slipped below the $1.40 support zone to trade at the $1.35 mark today.
• The XRP ETFs have seen mild inflows of $1.21 million, despite the wobbling crypto market.
• The technical outlook paints a bearish picture, as the altcoin slips below key moving averages.

The XRP price has plunged below $1.40, as the cross-border payment token is presently trading at $1.35. This fall is a continuation of a trend where the weekly high of $1.61 was achieved on 17 March. Meanwhile, the crypto market is experiencing a wider sell-off due to macroeconomic uncertainty and geopolitical actions, particularly in the Middle East.

XRP Sees Mild Inflow as the Risk-off Mood Persists

The interest in XRP digital investment products is still at the weak end, as witnessed in the adoption of spot Exchange-traded Fund (ETFs). However, the inflows have been very low at $1.12 million on Wednesday, and $1..4 million on Tuesday. However, on Monday, it was a quiet day, with no flows registered.

According to SoSoValue data, the inflows last week were only two days, and the US-listed ETFs were inflowed with $1.98 million on Friday and almost $5 million on 17 March. In the meantime, the total assets under management have fallen to approximately $996 million. This is compared to the start of the year, which is $1.65 billion, and the cumulative inflows averaged is $1.21billion.

The continued risk-off mood suggests that the market does not have confidence in the possibility of XRP recovering. 

XRP Price Breaks Below Support as Sellers Tighten Grip

The XRP has declined from below the $1.40 region, hitting the $1.35 mark, as the bears show intense strength in the last 24 hours. The coin is still below its important 200-day simple moving average (SMA) at $2.07, which acts as a long-term resistance level. Notably, the 50-day SMA at $1.40 serves as the overhead resistance, meaning XRP needs to clear this to regain upward momentum.

Looking at the daily chart, the altcoin is trading within a descending triangle, as further downside is more likely. The price currently sits at the $1.35 level, a common support zone during corrections.

Technical indicators reflect neutral-to-bearish market conditions, as the Relative Strength Index is near 41.61. This basically suggests no strong momentum either way. The MACD is slightly below the signal line but close to neutrality, signalling possible price consolidation.

Looking at the bigger picture, if XRP breaks above the 50-day SMA at $1.40, the next resistance zone lies between $1.55 and $1.92. A breach above these levels could trigger renewed buying appetite, and a test of higher levels near the $2.69 could come in handy.

However, if the resistance zones prove too strong, the XRP price may enter into a consolidation or drop further. In such a case, the cross-border payment token might revisit lower supports near $1.21 and $1.11, recent lows. This may risk short-term selling. In the meantime, XRP remains cautious as the technical indicators suggest a wait-and-see market.