XRP price has struggled to regain traction in recent weeks, with multiple failed recovery attempts adding to the bearish pressure. The coin remains in a downward trend, reflecting indecision across the cryptocurrency market.
Despite this weakness, the XRP ETF continues to attract funds, indicating that institutional demand remains resilient.
Losses for XRP holders have steadily increased, adding to the pressure on recent price movements. Net unrealized gains and losses data showed unrealized profits had fallen to a yearly low. Investors who bought XRP above $1.86 are currently in the red, while only those who bought below that level remain profitable.
The shift raises concerns about the behavior of long-term holders. Addresses holding XRP for more than a year may consider selling to lock in remaining proceeds. If these holders accelerate profit-taking, selling pressure may intensify and further affect XRP price stability.
The XRP ETF remains the strongest macro support for the asset. The funds have yet to see a single day of net outflows since their launch six weeks ago. This consistency stands out amid broader market uncertainty and declining activity in spot cryptocurrency markets.
The momentum continued into Week Seven. In the pre-Christmas trading day, the XRP ETF recorded inflows of $11.93 million. The data suggests institutional investors remain confident in XRP’s long-term prospects, even as retail sentiment weakens and price action remains capped.
As of this writing, XRP is trading near $1.86, just above the $1.85 support. Prices remain capped by a downtrend line that has lasted for more than six weeks. Repeated failures to break this structure have fueled the bearish sentiment among short-term traders.
Under current circumstances, a breakthrough seems unlikely. Market direction remains unclear, and mounting losses increase the risk of additional selling. ETF inflows may help stabilize prices, potentially keeping XRP above the $1.79 support. A break below this level could extend the downtrend to $1.70.
However, changes in broader market conditions could alter the outlook. Improving risk sentiment could see XRP rebound from $1.85. If the downtrend line is decisively broken, the target is $1.94. Clearing this level could open the way to $2.00, invalidating the bearish thesis.
Read Aaryamann Shrivastava’s original story “XRP ETF sees 7 consecutive weeks of inflows – why price still struggles” by Aaryamann Shrivastava on beincrypto.com