XRP is currently showing signs of stabilization at a critical support zone near $1 following a 17% decline over the past week, as dampened institutional demand and macroeconomic uncertainty persist.
The digital asset remains the second-worst performer among the top 10 cryptocurrencies by market capitalization, trailing only Zcash.
According to TradingView News, the daily Relative Strength Index (RSI) for XRP has reached deeply oversold levels, suggesting that a temporary bounce toward the $1.20 resistance level remains a possibility. Analysts caution, however, that this potential counter-movement does not necessarily signal the end of the broader downward trend, as the asset remains at risk of falling below the $1 mark.
The recovery of the token has been hindered by a lack of institutional participation. Data from SoSoValue indicates that XRP ETFs saw no inflows or outflows on Wednesday, following a weekly total outflow of $17.6 million. This includes a $10 million net outflow on Monday, which marked the largest single-day withdrawal since March 2026, and a $7 million loss on Tuesday.
Broader market sentiment is currently weighed down by concerns over inflation and potential shifts in monetary policy. Following a report on the US Consumer Price Index, traders are pricing in a 15% probability of a 50-basis-point interest rate hike at the Federal Reserve’s December meeting, according to CME Group’s FedWatch data.
Reflecting this cautious environment, the Crypto Fear and Greed Index has dropped to 26, placing the market firmly in the fear zone.
Technically, XRP is positioned at the midpoint of its second bullish Fair Value Gap, a zone that previously attracted buying interest. While a successful defense of this support could drive the price toward $1.20, the price must reclaim the $1.35 resistance level in the coming weeks to confirm a bullish reversal.
