XRP faces selling pressure as on-chain data cools down and ETF capital stalls

Ripple (XRP) is under correction pressure while trading in a downtrend, although it temporarily remains above the support level of $2.22 at the time of recording on Wednesday. Widespread concerns in the cryptocurrency market have erased the growth achievements since the beginning of the year, while profit-taking activities are increasing, reflecting a weakening in investor confidence in XRP’s ability to sustain its recovery momentum.

In a positive scenario, if the price breaks above the long-standing downtrend line, XRP could open up room for an increase toward the $3.00 mark. Conversely, closing below the short-term support zone of $2.22 will increase selling pressure, pushing XRP back to test the important demand zone around $2.00 and raising the risk of entering a longer-lasting decline cycle.

XRP SOPR Index Corrects Amid Increasing Profit-Taking

The on-chain Spent Output Profit Ratio (SOPR) — determined by the ratio of realized value (sale price) to the value at the time XRP was created (purchase price) — is signaling a clear correction. According to data from Glassnode, SOPR dropped to 1.05 on Tuesday, down from 1.08 the previous day, indicating that profit margins on transactions are narrowing.

The downward movement of SOPR reflects an increasing profit-taking trend, which adds further resistance to XRP’s price rally. If this index continues to weaken and falls below the average threshold of 1.00, the market could enter an oversold state — a scenario that often opens opportunities for risk-tolerant investors.

SOPR Data for XRP | Source: Glassnode On the other hand, XRP ETF funds still recorded inflows of about $19 million on Tuesday, although significantly lower than the $46 million on Monday. Despite the slowdown, demand for US-listed XRP ETFs remains stable since their launch in November, bringing the total accumulated capital to $1.25 billion and the total related net assets to $1.62 billion.

Source: SoSoValue## Technical Outlook: XRP Maintains Key Support

XRP is under correction pressure but still holds the important short-term support zone at the 100-day exponential moving average (EMA) around $2.22, recorded at the time of writing on Wednesday. The correction follows a strong upward trend earlier this year — which previously reinforced a bullish reversal signal — but the price has encountered significant resistance at the 200-day EMA at $2.34 and is also blocked by the downward trendline on the daily timeframe.

The bullish momentum appears to be weakening as the RSI indicator cools from overbought levels, dropping to 64. If RSI continues to slide toward the neutral zone, selling pressure could increase, raising the risk of XRP losing the support level of the 100-day EMA at $2.22.

Daily XRP/USDT Chart | Source: TradingView A close below this key technical level is likely to open a scenario of deeper correction, with the next target being the 50-day EMA around $2.07.

However, the short-term outlook for XRP is not entirely negative. The MACD indicator on the daily chart still shows a positive divergence — a potential buy signal — indicating that a strong breakout above the downtrend line is still being closely watched by traders.

SN_Nour