XRP Price Prediction: Exchange Inflows Jump Again and Set Stage for a Drop to $1.15

XRP (XRP) is once again retreating sharply for a second day in a row, losing nearly 5% in the past 24 hours and dropping below $1.40.

Despite this week’s strong jump following President Trump’s State of the Union speech, cryptocurrencies failed to stay above key levels, as market sentiment remains heavily depressed.

In the case of XRP, the selling pressure started to increase as the token hit $1.45.

XRP ETFs Bring In $7M This Week

Despite the retreat, net inflows to exchange-traded funds (ETFs) continue to be positive, as investors poured more than $7 million into these vehicles this week.

Total net assets held by these funds have now declined to $1 billion, primarily as a result of the token’s significant drop. This translates into a 39% drop from a local peak of $1.65 billion in net assets in January.

Wall Street’s interest in XRP persists, but inflows are quite far from the levels seen in previous months, when investors bought over $10 million worth of the token in any given day.

However, on-chain data from Santiment warns that whales could be getting ready to drop the hammer on XRP again.

Downtrend Likely to Continue as Exchange Inflows Rise

Exchange inflows have been rising since February 22, indicating that investors could be positioning to keep selling XRP once the price increases again.

The last time we identified this trend, we predicted that XRP would hit the $1.55 mark before the downtrend resumed.

That prediction turned out to be true, which increases the odds that this time things will play out similarly.

This metric tracks the volumes transferred from external wallets to exchange wallets. When inflows increase, it means that investors who previously held these tokens outside of exchanges are turning to these institutions to cash out of their positions due to their more liquid order books.

These inflows are still not high enough to cause a significant drop, but they are high enough to sustain the continuation of the current downtrend.

Next Stop $1.15 for XRP If The Selling Pressure Increases

Heading to the daily chart, we can see that the key support area to watch for XRP would be $1.35. This has been a level from which the price has bounced on previous occasions.

Even though the demand has not been high enough at that threshold to push XRP above $1.55, if a significant volume of buy orders is still sitting there, this could create a temporary floor and prompt a retest of this key resistance.

Meanwhile, if that level is broken, our baseline target for XRP would be $1.15, meaning a 16% downside risk from where the token is trading now.

The Relative Strength Index (RSI) has been trying to climb above the 14-day moving average but has not been able to reach bullish levels (above 60) despite the latest spike in positive momentum.

XRP needs to break past $1.55 to reverse its current downtrend, or the market will likely revisit its recent lows.