XRP extended its retreat on Tuesday, falling 3.44% over the past 24 hours to around $2.35 USD, erasing part of its recent 8% weekly gain as post-ETF profit-taking meets broader market caution.
The excitement surrounding the Canary XRP ETF, which debuted on Nasdaq last week, has cooled sharply. The fund attracted $138 million in inflows during its launch phase, expanding institutional access to Ripple’s token after a 320% yearly rally. However, recent spot market outflows totaling $68 million suggest traders are locking in profits—mirroring early volatility seen during Bitcoin and Ethereum ETF rollouts.
Technical Breakdown
XRP’s drop below the $2.41 Fibonacci retracement level (38.2% from July–October rally) has invalidated a key ascending triangle pattern, triggering stop-loss cascades and highlighting fragile short-term sentiment.
The token now trades near a cluster of short-term moving averages, signaling a potential consolidation phase:
| Indicator | Value |
|---|---|
| 10-day EMA | $2.3994 |
| 20-day EMA | $2.4304 |
| 30-day EMA | $2.4761 |
| 50-day EMA | $2.5607 |
| 200-day SMA | $2.6309 |
Momentum indicators reinforce the cooling outlook: RSI (14) stands at 49.98 (neutral), while MACD (-0.0546) and Momentum (10) (-0.0426) point to fading bullish strength. Trading volume rose 32% to $6.13 billion, with 72% sell-side activity, according to CryptoQuant.
With the Fear & Greed Index now at 31 (Fear) and Bitcoin dominance steady at 59%, altcoins like XRP are facing liquidity pressure. Analysts see $2.30 (50-day EMA) as immediate support, where whale accumulation may help stabilize prices. A rebound above $2.44 (30-day SMA) or $2.50 could restore bullish momentum—especially if ETF inflows recover and Bitcoin maintains strength above $105K.
