XRP Faces Downward Pressure as ETF Flows Decline

GasFeeVictim · 2026-02-27T13:15:07+00:00

XRP has seen institutional capital flow into spot ETFs, but this trend is weakening, suggesting declining buyer confidence. Technical indicators point to potential downward pressure, particularly if it falls below $1.26, raising risks for long positions.

GasFeeVictim

2026-02-27 13:15:07

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XRP has received institutional capital inflows into spot ETFs over the past few weeks, although this activity shows a clear downward trend. According to NS3.AI data, the bearish momentum is consolidating as buyer conviction during dips diminishes. With a current price of $1.38 and a daily volume of $81.20M, the asset is struggling to maintain relevance while multiple technical indicators warn of potential downward pressure.

Spot ETF Flows Show Signs of Weakening

Institutional capital inflows into XRP spot products have been steady over the past three weeks; however, the magnitude of these flows is decreasing significantly. This weakening in institutional demand is a concerning indicator of long-term confidence in the asset. Although some buyers have attempted to stabilize the price at lower levels, the downtrend seems to be gaining ground as buying momentum diminishes.

Technical Indicators Warn of Downside Risks

Technical signals paint a challenging picture for XRP. The asset is struggling to break above its weekly volume-weighted average price (VWAP), suggesting significant resistance at higher levels. NS3.AI analysts warn that if XRP falls below the critical level of $1.26, further bearish pressure could be triggered with lower price targets. This scenario poses a considerable risk for those holding long positions without proper protection.

Institutions Reduce Confidence in Bullish Movement

The decline in ETF flows is not just a volume issue but a deeper reflection: institutional confidence in a potential rally is waning. Sophisticated investors appear to be waiting for more solid confirmations before committing additional capital. This shift in institutional sentiment, combined with bearish indicators, suggests XRP could face a consolidation phase or further correction in the short term.

The technical outlook and flow data point to an evident risk environment for XRP, where investors should stay vigilant against potential downward moves and protect their positions accordingly.

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