XRP Price Forms a Risky Pattern as ETF Outflows Climb and Macro Risks Intensify

XRP (CRYPTO: XRP) extended its recent decline as the broader crypto rally stalled and investor demand cooled. The token slipped to $1.3080, its weakest level since September 18 and roughly 20% below its September highs. The retreat could deepen, as the price has formed a bearish technical pattern and ETF outflows are climbing.

XRP ETF Outflows Rise as Macro Risks Rise

Ripple has pulled back over the past few weeks, in line with Bitcoin (CRYPTO: BTC) and other altcoins. The market capitalization of all tokens has dropped from nearly $3 trillion in September to $2.7 trillion today. 

This retreat has coincided with the fading demand in the spot, futures, and ETF market. CoinGecko data shows that its 24-hour volume dropped to $1.4 billion from over $1.7 billion on the same day last week.

Spot XRP ETFs recorded outflows of more than $2.47 million on Friday, after shedding $104,000 the day before. That left the funds with a net outflow of $1.8 million for the week, their first weekly outflow since July. Bitwise’s XRP fund holds $541 million in assets, while Franklin’s XRPZ holds $390 million.

XRP’s futures open interest has also been sliding, dropping to $2.8 billion, its lowest level since September 17. It peaked at $3.78 billion last month, which puts the current figure roughly 26% below that high. Falling open interest typically signals that demand from leveraged traders is fading.

The performance has coincided with rising macro headwinds. Crude oil prices soared, with Brent, the global benchmark, crossing the $110 milestone. The West Texas Intermediate (WTI) jumped to $101 as the crisis in the Middle East escalated. US bond yields have continued rising, with the 10-year rising to 5.10%.

XRP Price Technical Analysis

XRP chart | Source: TradingView

The daily chart shows that XRP price has dropped sharply in the past few days, moving from a high of $1.6465 to $1.3082. It is attempting to move below the neckline of $1.2470, its lowest level on September 15. 

XRP is attempting to form a death cross pattern, which happens when the 50-day and 200-day moving averages cross each other. The Relative Strength Index (RSI) and the MACD have continued falling.

Therefore, the price may continue falling as sellers target the psychological level of $1.00. A move above the resistance level of $1.3840 will invalidate the bearish outlook.

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