XRP slides as institutional and retail demand falters
Ripple (XRP) is trading down for the third consecutive day on Thursday amid escalating volatility in the cyrptocurrency market. After peaking at $2.41 on Tuesday, its highest print since November 14 amid the early-year rally, XRP has quickly ran into aggressive profit-taking.
Sellers have since taken control, with the cross-border payments token attempting to stabilize just above the psychological $2.00 handle. The broader crypto outlook has also deteriorated, with Bitcoin (BTC) briefly sliding below $90,000
Market sentiment has also flipped decisively into fear, with the Crypto Fear & Greed Index by Alternative sliding to 28 after failing to sustain a move above 42 on Wednesday. Its sudden reversal underscores the loss of bullish momentum.
If $2.00 gives way, downside risks may intensify, with the November support at $1.77 and the April low near $1.61 emerging as the next key demand zones.
XRP risks extending decline as retail and institutional demand softens
XRP spot Exchange Traded Funds (ETFs) recorded nearly $41 million in outflows on Wednesday after maintaining stellar performance since their debut in November. The cumulative inflow now stands at $1.2 billion while net assets average $1.53 billion, according to SoSoValue data.
Softening demand for ETFs can be attributed to deteriorating sentiment, which often hinders price increases, as investors prioritise risk aversion. The next few days could provide insight into the overall trend, especially given XRP’s technical structure's weakness.
Source: Fxstreet
