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XRP (XRP, Ripple) is threatening a key support level and faces the risk of an additional plunge of around 12%, as investor selling pressure is reversing institutional fund flows and casting a dark cloud over the market.
According to investment outlet FXEmpire on March 7 (local time), XRP has fallen 0.5% over the past week, significantly underperforming major altcoins by market capitalization such as Solana (SOL) and Ethereum (ETH), which posted gains during the same period. Notably, exchange-traded funds (ETFs), which had recorded seven consecutive days of net inflows, saw about $6 million flow out recently after attracting $28 million the previous week, signaling a sharp cooling in buying sentiment.
Although the market’s Fear and Greed Index has rebounded slightly from a recent low of 5 to 25, escaping extreme downturn conditions, it is still too early to call a bottom as sell pressure intensifies whenever prices rise. In fact, XRP encountered a massive sell wall near $1.45 last Wednesday and began retreating, now retesting the $1.35 and $1.34 support levels that previously triggered multiple rebounds.
On the four-hour chart, XRP has already broken below this support once, raising the possibility that if the downtrend continues, it could slide to $1.27 and potentially as low as $1.21. Adding to the bearish outlook, the Relative Strength Index (RSI) stands at 40, suggesting that a breakdown from current levels could result in a severe loss of up to 12%.
The one-hour chart has also captured two consecutive sell signals accompanied by above-average trading volume, indicative of whale or institutional participation, further deepening the bearish trend. Experts warn that selling pressure could intensify over the weekend when trading volume typically declines, advising close attention to whether a new buy signal emerges at the $1.34 support level or whether short-position opportunities targeting $1.27 open up.
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