XRP has fallen nearly 7% over the past week after failing to break through the $1.60 resistance level, putting the token’s nearby support zones under renewed scrutiny. Traders are now watching whether the $1.32 area can hold and provide a base for a recovery.
Trading activity remains substantial, with roughly $3 billion in XRP changing hands over the past 24 hours. That represents close to 4% of the token’s circulating market capitalization. However, weaker exchange-traded fund demand and rising XRP deposits to exchanges have created a less supportive backdrop for the market.
ETF demand slows in October
XRP-linked ETFs recorded $121.4 million in net inflows during September, according to SoSoValue figures cited in the analysis. October inflows have reached only about $4 million so far. The analysis estimates that the month could finish with approximately $17 million in net inflows, although the final result will depend on demand during the remaining trading sessions.
October’s cumulative flow remains positive, meaning the slowdown does not by itself indicate that investors are withdrawing capital. Still, the sharp decline from September’s inflows removes an important potential source of buying support while XRP attempts to stabilize.
Exchange deposits rise as sentiment cools
On-chain data shows that XRP transfers to exchanges have increased over the past two weeks, reaching their highest level since July 2026. A previous rise in exchange deposits coincided with a decline in XRP’s price from approximately $1.14 to $1.00.
Higher exchange inflows can indicate that holders are preparing to sell, although they do not confirm that sales have taken place. Deposited tokens may also be used for trading, collateral or other purposes. Even so, the increase has raised concerns that some early investors could be positioning to take profits after XRP’s latest rally.
Broader market sentiment has also weakened. The Crypto Fear and Greed Index has dropped from a recent high of 80 to 58. The analysis describes the macroeconomic environment as slightly more supportive than it was several weeks earlier, citing Federal Reserve minutes that did not alter expectations for another rate increase being delayed until at least December. Softer-than-expected August PCE inflation data was also identified as a positive factor, though it has not prevented short-term profit-taking across crypto markets.
Key XRP levels for traders
On the daily chart, XRP is trading near its 200-day exponential moving average, with approximately $1.32 identified as a potential rebound area. A successful defense of that level could help stabilize the token. If selling pressure intensifies, the next notable support zone is near $1.26, which has previously attracted buyers.
Momentum indicators remain cautious, with the Relative Strength Index approaching 40 and signaling a near-term advantage for sellers. The medium-term target near $1.80 remains possible, but XRP would first need renewed demand and a sustained move above the $1.60 resistance that capped its latest advance.
