- Regardless of the cooling ETF demand, XRP has managed to sustain support over the $1.40 level.
- Keeping a technical perspective, momentum indicators indicate that bearish pressure is slowly declining.
The XRP price is stabilising around a prominent technical level even as institutional flows wear out, surging questions regarding the upcoming move of the token. At the time of writing, XRP was trading at $1.41 on March 13, getting around 2.4% on the day, as per the data from CoinMarketCap.
The token has been combining in a narrow range after diminishing from highs around $1.90 earlier this year, indicating that the market is looking for a new directional catalyst. Institutional sentiment seems to be softening.
The data tracking XRP spot exchange-traded funds reveals daily net outflows of around $6.08 million; however, total net assets over these products are still close to $967 million.
The chart shows that after various sessions of inflows earlier in March, ETF activity has turned negative with various red days in a row, indicating that some institutional investors may be suppressing exposure or locking in profits after last gains.
Reducing Bearish Behaviour
Regardless of the cooling ETF demand, XRP has managed to sustain support over the $1.40 level, an area that traders are nearly watching as a potential pivot for the upcoming move.
Keeping a technical perspective, momentum indicators indicate that bearish pressure is slowly declining. The relative strength index (RSI) now stands around 50, showing neutral momentum and a balance between purchasers and sellers.
At the same time, the Awesome Oscillator has gradually surged toward the zero line after spending various weeks in the negative area, a shift that normally shows weakening downside momentum and the probability of a trend reversal.
Extra support for market sentiment could come from advancements around Ripple, which lately introduced a $750 million share buyback programme targeted at repurchasing shares from early investors and employees.
However, the buyback does not directly impact XRP supply; it is mostly seen by market participants as a sign of confidence in the wider ecosystem surrounding the token.
Source: https://thenewscrypto.com/xrp-holds-1-40-support-as-etf-outflows-weigh-on-sentiment/
