XRP tests the $1.32 support level as ETF demand slows

XRP Tests $1.32 Support Amid Slowing ETF Demand

Market Analysis

XRP has declined nearly 7% over the past week after failing to break through $1.60, leaving traders watching nearby support for signs that the correction could stabilize. Trading activity remains elevated at approximately $3 billion, but slower ETF inflows and increased transfers to exchanges suggest buyers face a more challenging environment. The pullback comes alongside broader crypto market weakness and cooling sentiment following the recent advance.

Onchain Data

Onchain data shows that XRP inflows to exchanges have accelerated over the past two weeks, reaching their highest level since July 2026. The earlier increase coincided with a decline from approximately $1.14 to $1.00. The analysis suggests another period of selling could follow the latest rise in deposits.

Technical Outlook

Bulls hold the $1.32 support, with the daily chart placing XRP near its 200-day exponential moving average. A successful defense of that area could help stabilize the price. If selling accelerates, the next support lies near $1.26, a level that has previously attracted buyers.

Market Sentiment

The Crypto Fear and Greed Index has fallen from a recent high of 80 to 58, reflecting a shift away from strong optimism as prices correct. The report argues that the macroeconomic backdrop has become somewhat more supportive than it was a few weeks earlier, with the latest Federal Reserve minutes not changing the baseline expectation that another rate increase would be delayed until at least December. However, expectations for a later rate hike have not prevented near-term profit-taking across the crypto market.