XRP Teeters on the Edge: Institutional Sentiment Cools, Trading Volume Soars

Institutional Money Flees XRP Amid Market-Wide Inflows

XRP is dancing dangerously close to a critical support level as the big players start pulling back. A recent report from CoinShares dropped a bombshell: XRP-focused investment products bled out for the second week in a row, losing a hefty $28.2 million. Meanwhile, the broader crypto market was swimming in cash, with $286 million flowing in last week alone and a whopping $10.9 billion over seven weeks.

Assets Under Management Dip as Uncertainty Grips Markets

Even with all that money pouring in, the total assets under management took a hit, dropping from a record high of $187 billion to $177 billion. Blame it on the rollercoaster ride of U.S. tariffs and the ensuing market jitters that sent prices tumbling.

XRP Investors Get Cold Feet, Price Stuck in a Rut

The exodus from XRP investment products screams one thing: investors are getting antsy. XRP's price has been stuck in a tight range, trading at $2.20 at press time, up just 1.6% in the last 24 hours. Over the past week, it's been bouncing between $2.11 and $2.35.

Trading Volume Surges Despite Price Stagnation

But wait, there's a twist! Spot trading activity is on fire. XRP's trading volume shot up over 24% in the last 24 hours, hitting nearly $2 billion. It looks like interest is picking up, even if the price isn't budging.

Derivatives Market Signals Increased Volatility Expectations

On the derivatives side, things are heating up too. Open interest is up 2% to $3.98 billion, and derivatives volume has jumped 18% to $3.45 billion. Traders are clearly bracing for some wild swings in the near future.

Technical Indicators Point to Short-Term Downtrend

From a technical standpoint, XRP is feeling the heat. It's trading below its 10, 20, 50, and 100-day moving averages, all screaming "sell!" That's a clear sign of a short- to medium-term downtrend. The only glimmer of hope? The 200-day exponential moving average, hinting at some long-term support.

Bearish Momentum Persists, But a Breakout Looms

The relative strength index is at 43.5, just shy of oversold but still neutral. But the moving average convergence divergence is showing a negative crossover, meaning the bears are still in control. And those narrowing Bollinger Bands? They're hinting at less volatility now but a potential explosion later.

XRP Hugs Lower Support, Eyes Critical Resistance

XRP is clinging to the lower band, which has been a trusty support in the past. To break out bullish, it needs to shatter the $2.30-$2.35 resistance level, backed by a surge in volume and a crossover of those short-term moving averages.

Bullish or Bust: Key Levels to Watch

If XRP can pull off a sustained close above the 50-day EMA, that's an early sign of strength. From there, it might make a run for the $2.50 zone. But if it can't hold above $2.13 and crashes through $2.10 with heavy volume, watch out. The next stop could be the psychological $2.00 level, and if things get really ugly, $1.85 is in the crosshairs.