XRP Price Faces a 25% Crash Warning as ETF Demand Falls
XRP faces a potential 25% crash risk due to failed bullish signals and weakening institutional demand reflected in ETF outflows.Summary
The XRP price is positioned precariously near a key breakdown zone, with underlying signals suggesting increasing risk. A recent hidden bullish divergence on the daily chart, which typically signals a bounce, failed to materialize, indicating a lack of buyer conviction.
This weakness is corroborated by external data: XRP-related ETFs recorded net outflows of approximately $40.5 million for the week ending January 23, marking a shift from previous inflows. Furthermore, long-term holder balances have flattened and slightly decreased, confirming weak demand.
Adding to the bearish outlook, wallets holding 10 to 100 million XRP have reduced their holdings by about 90 million XRP. If XRP closes below the $1.85-$1.86 support level, it could trigger a breakdown through its rising wedge structure, potentially leading to a 25% drop toward the $1.42 region.
(Source：BeInCrypto)