XRP saw a notable pullback on Wednesday, retreating from a recent high of $1.37 to $1.33. While recent data shows $3.32 million in inflows into Ripple-related ETF products, this institutional buying has failed to offset the heavy selling pressure weighing on the market.
Analysts note that traders are using price rallies as an opportunity to close out positions rather than opening new long positions. This behavioral pattern has left XRP consistently underperforming, failing to keep pace with the broader market's momentum.
Heavy Selling Pressure and Distribution Signals
Market observations indicate that XRP has faced repeated rejection in the $1.37 to $1.38 range. The fact that trading volume has risen alongside the price decline is technically viewed as a classic sign of "distribution" rather than a period of accumulation.
According to CoinDesk data, the downward trend accelerated after XRP broke below the $1.35 support level. Although there was a brief intraday dip to $1.31, subsequent recovery attempts have lacked conviction, highlighting a lack of sustained buying interest.
Currently, XRP is trading below its key moving averages, with the overall structure remaining in a downtrend. Tightening liquidity on exchanges has further increased market fragility; should key support levels fail, the price could face a more aggressive slide.
Looking ahead, analysts are focused on the immediate support at $1.33. If this line of defense is breached, the next critical level to watch is $1.28. For the bulls to reverse the current bearish trend, XRP must reclaim the $1.35 level in the near term and challenge the $1.38 resistance; otherwise, the market is likely to remain trapped in a weak, sideways consolidation.