XRP Faces Potential 50% Decline Even as ETF Inflows Continue for Nine Consecutive Days
Nine straight days of positive net inflows into spot XRP exchange-traded funds help counteract selling pressure and may lay groundwork for future price appreciation.
Over the past five trading sessions, XRP (XRP) has experienced a 12% decline in value, and the emergence of a bearish technical formation suggests additional downside movement could be on the horizon.
Key takeaways:
- A bear pennant formation on XRP/USD's three-day chart suggests a potential decline of 52.5% to reach the $0.65 level.
- Continued institutional buying interest via exchange-traded products provides support for the bullish case of an XRP price rebound.
Bear pennant breakdown emerges for XRP
Throughout the period since the beginning of February, the XRP/USD trading pair has been moving within the confines of a bear pennant formation visible on the three-day time frame.
Within the framework of technical analysis, bear pennants are commonly interpreted as patterns that signal continuation of bearish trends. The formation received confirmation once the price action penetrated the pennant's lower boundary trendline at the $1.40 mark, as illustrated in the accompanying chart.
To calculate the downside price target, traders measure the vertical distance of the initial decline (also known as the pennant's flagpole) and project that same distance downward from the breakout point where price penetrates the pattern's lower boundary.
Based on this technical measurement method, XRP's projected downside target sits around $0.65, representing approximately 52.5% below where the asset currently trades.
On the weekly timeframe, XRP's Stochastic RSI indicator "has confirmed a deathcross, marking the third time this signal has flashed since the July‑2025 ATH," according to technical analyst ChartNerd in a recent post on X.
The two previous occurrences of this cross resulted in more substantial corrections approaching 50%, with the January signal appearing after a "relief rally into a weekly 20/50 EMA death cross," according to the analyst, who further noted:
"A failure at the weekly 20 (just retested) or the weekly 50 ($1.80) will likely open the next leg down later in the year."
Over the past week, the daily Relative Strength Index has declined from 63 to 42, indicating growing bearish pressure in the market.
According to reporting from Cointelegraph, market participants on the buy side are anticipated to mount a strong defense of the $1.27 level, as a daily close beneath this threshold could push the XRP/USDT pair down to $1.11, with further downside potential to the psychologically significant $1 level.
ETF demand fails to lift XRP price
The five-day downward price movement has occurred despite the fact that institutional market sentiment continues to show relatively bullish characteristics, as evidenced by consistent capital inflows into United States-based XRP spot exchange-traded funds.
Based on information compiled by SoSoValue, XRP-focused ETFs recorded an additional $750,000 in inflows on Monday. This achievement represented the ninth consecutive trading session with positive net inflows, bringing the total for this streak to $95.5 million. The ongoing momentum has elevated cumulative inflows to approximately $1.4 billion, while assets under management (AUM) have reached $1.14 billion.
Worldwide XRP investment vehicles also posted weekly inflows totaling around $67.6 million for the seven-day period concluded on May 15, demonstrating stronger performance than Bitcoin (BTC) and Ether (ETH), which experienced outflows of $981.5 million and $250 million, respectively.
These figures demonstrate that institutional demand for XRP-related products is "heating up, signalling growing confidence in regulated crypto exposure," according to a Tuesday post from TronWeekly.
According to prior coverage by Cointelegraph, enhanced technical confirmation signals, successful passage of the CLARITY Act in the United States, and improving metrics in network activity may also play supporting roles in XRP's potential price recovery.