The price of XRP has struggled to recover over the past few weeks, with several failed attempts to bounce back increasing downward pressure. This token remains stuck in a downtrend, reflecting the overall hesitance of the crypto market as well.
Although this weakness exists, the XRP ETF continues to attract capital consistently, indicating that institutional demand remains strong.
The demand for the XRP ETF in Thailand remains strong.
The losses of XRP holders are continuously increasing, putting pressure on the short-term price direction. Net Unrealized Profit and Loss data shows that unrealized profits have fallen to a yearly low. Investors who bought XRP above 1.86 USD are currently facing losses. However, only those who entered the market below this level are still in profit.
This change raises concerns about the behavior of long-term holders. Each address holding XRP for more than a year may consider selling to lock in remaining profits, and if these profit-taking sales occur rapidly, there is a chance of creating selling pressure and further destabilizing XRP's price.
The XRP ETF continues to be the most significant support in the overall picture of this asset. Since its launch six weeks ago, these funds have never experienced a net outflow in a single day. This consistency stands out amidst market uncertainty and the slowdown in spot crypto market activity.
This momentum continues into the seventh week, as on the trading day before Christmas, the XRP ETF recorded a net inflow of 11.93 million USD. This data reflects that institutional investors still have confidence in XRP's long-term trend, even though retail investors' sentiment towards the market has weakened and prices remain under pressure.
XRP is trading near 1.86 USD as this article is being written, slightly above the support level of 1.85 USD. XRP's price is still restrained below a downward trend line that has been in place for over six weeks. The inability to break through this trend repeatedly has intensified the bearish sentiment among short-term traders.
The occurrence of a breakout signal seems unlikely under current conditions. The market direction is still unclear, and increasing losses raise the risk of continued selling. The inflow of the ETF may help support the price and may keep XRP above the support level of 1.79 USD. If the price breaks below this level, the downward trend could extend to 1.70 USD.
However, if the overall market conditions change, this view may also change. If risk sentiment in the market improves, XRP could quickly rebound from 1.85 USD. A clear move above the downward trend line would target 1.94 USD, and if it breaks through that level, it could pave the way to 2.00 USD and nullify the downward trend.
