XRP approaches key support level as ETF inflows increase—here are the price levels traders are watching now

• Despite the decline in spot prices, the XRP ETF continues to receive steady capital inflows, with total assets exceeding 1.12 billions USD.
• The price remains in a downtrend, but momentum indicators show that bearish pressure is beginning to ease.
• Ongoing institutional accumulation may eventually exert upward pressure on the XRP spot market.

XRP ETF has recorded positive capital inflows for the second consecutive day, quietly continuing the momentum of inflows that began shortly after the product's launch. According to the latest data from SoSoValue, approximately $10.89 million flowed into the XRP ETF today, bringing its total net assets to about $1.12 billions. Interestingly, the timing of these inflows is quite opportune. While the XRP spot price continues to decline, institutional funds keep pouring in.

This gap between stable ETF demand and weak price action is starting to attract attention. It naturally raises a question: Are institutions quietly building positions while the broader market remains oblivious?

No Signs of Slowdown in Institutional Accumulation

Looking at SoSoValue data, it's hard to discern a clear pattern. Ignoring since mid-November, the inflow bars have consistently remained green. The ETF's assets under management have steadily climbed, breaking through the $1.1 billions mark, with no significant outflows since its inception.

Even amid increased market volatility, buyers continue to accumulate positions. This persistence usually indicates a long-term investment strategy rather than short-term trading. Institutions may view the current XRP price as a discount buying opportunity, especially compared to previous highs.

If this trend continues, the ETF may begin to play a role in stabilizing the XRP market structure. Early Bitcoin exchange-traded funds (ETFs) also exhibited similar dynamics, absorbing supply during periods of weak prices, after which market momentum eventually shifted.

The Weakness in XRP Price May Be Easing

In terms of price, XRP is still under pressure, no doubt about it. It is trading near $1.92, more than 40% below its annual peak, and the broader market is also under pressure. The downtrend since early November remains intact. The daily chart continues to show lower highs and lower lows, meaning sellers are still technically in control.

That said, momentum indicators are starting to show a slightly different trend. The MACD histogram is beginning to flatten, and the MACD and signal lines are gradually converging. This trend suggests... compression Even if the price hasn't reversed yet, this situation often occurs when bearish momentum starts to weaken.

In other words, sellers are still active, but their strength may be waning. This is a subtle but important shift.

The Phenomenon of ETF Buying While Retail Sells Feels Familiar

This pattern is not new in the crypto space. In previous cycles, ETFs bought heavily during periods of weak prices, often coinciding with retail investors selling later on. Institutions quietly enter the market while retail sentiment remains pessimistic.

XRP's current structure fits this pattern quite well. Funds tend to buy on dips rather than sell. Retail confidence remains weak. Momentum indicators are stabilizing rather than accelerating downward.

Of course, none of this guarantees an immediate price rebound. But historically, when ETF capital flows and price trends diverge for an extended period, prices often catch up later.

From Here, Key Levels Will Become Crucial

For now, several areas stand out. The support level near $1.85 is critical. Once this support is breached, the price could quickly test the $1.70 region. On the upside, if the price climbs back above $2.05, it would indicate the trend remains strong. Return.

On the ETF side, if daily inflows consistently break through the $15 million mark, it could trigger a stronger price move. Until then, XRP remains in a wait-and-see phase, with institutional investors quietly accumulating while the market waits for a cue to react.