A new wave of uncertainty has hit the digital asset market, directly affecting the XRP price prediction and generating concern among investors. As recently reported by James Butterfill, head of research at CoinShares, crypto asset exchange-traded products (ETPs) recorded massive outflows last week, a move driven by institutional caution. This capital exodus, which also significantly affected XRP-linked products, coincides with a tense macroeconomic environment and selling activity by large holders.
Hard data revealed by the analytics firm indicates that total ETP outflows reached $2 billion, marking the largest weekly withdrawal since February. While Bitcoin and Ethereum bore the brunt of the impact with withdrawals of $1.4 billion and $689 million respectively, XRP investment products were not exempt from this generalized negative trend. On the other hand, the asset’s price has retreated 3.6% in the last 24 hours, trading below the psychological mark of $2.20 and accumulating a weekly loss of 11% that keeps market traders on alert.
Will technical support withstand the current massive institutional selling pressure?
This correction scenario is aggravated by macroeconomic factors coming from the United States Federal Reserve. The entity’s chair, Jerome Powell, recently noted that a third interest rate cut in December is not guaranteed, which triggered an immediate reevaluation of risk expectations. Furthermore, the combination of monetary policy uncertainty and strategic sales by crypto-native whales has created a perfect storm. This context has forced analysts to revise their short-term projections, as institutional liquidity appears to be retreating toward more conservative positions momentarily.
From a technical perspective, the asset is forming a descending triangle pattern on the 4-hour chart, a structure that usually anticipates bearish continuation movements. Currently, the price holds precariously above the key support of $2.10, a level that has become the last line of defense for bulls. Likewise, if sellers manage to pierce this technical floor, the asset risks falling as low as $1.77. This would represent a potential additional drop of 16% from current levels, confirming the structural weakness that cryptocurrencies are experiencing in this volatility cycle.
However, the outlook is not necessarily gloomy for the asset’s future if it manages to maintain its current structure. If the price succeeds in bouncing from support and breaking the upper trend line of the triangle, the outlook could turn decisively bullish again. Therefore, traders are closely watching these levels, as a recovery here would invalidate the bearish thesis. To conclude, the market is at a turning point where price action in the coming days will determine if we are facing a temporary correction or the start of a deeper downtrend driven by institutional fear.
