XRP Faces Pressure Due to Changes in ETF Flow Types

MemeEchoer · 2026-02-27T20:05:19+00:00

XRP has seen inflows into ETFs, but the decline in volume indicates institutional weakness. Despite support at $1.26, investor indecision and technical signals suggest short-term risks and could accelerate a correction.

MemeEchoer

2026-02-27 20:05:19

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Over the past three weeks, XRP has seen significant inflows into spot ETFs. However, the outlook is not so positive: flow patterns show a concerning trend. According to data from NS3.AI, the volume of these inflows is rapidly declining, suggesting weak institutional conviction. While some sporadic purchases during dips have provided some stability, the markets face a mixed scenario where the quality of flows is as important as their quantity.

Mixed Flow Types Reveal Institutional Weakness

Analysis of different types of flows into XRP ETFs reveals a contradictory story. While institutional inflows are occurring, they are losing momentum. The slowdown in flow volume reflects possible indecision among major investors, who seem to be reevaluating their positions. This change in flow types is crucial to understanding XRP’s recent market behavior, especially when most indicators point toward bearish pressures.

Technical Indicators Warn of Short-Term Risks

Multiple technical signals raise concerns in the short term. XRP faces significant resistance when trying to break above its weekly volume-weighted average price (VWAP), forming bearish momentum patterns. The current price of $1.35 remains a healthy distance from the critical support, but any deterioration in flow types could accelerate a deeper correction.

Support Level at $1.26: Critical Defensive Line

The $1.26 level remains the key defensive point to watch. If XRP falls below this barrier, additional risks could emerge according to the latest technical indicators. The decline in flow types into ETFs further complicates the outlook, reducing the cushion provided by institutional buying during dips. The upcoming movements in flow types will be decisive in determining whether XRP can hold this defensive line.

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