"What's the point of holding on?"...XRP, $1.31 Collapse Amid Extreme Fear 'Red Flag'

▲ XRP, Whale/ChatGPT Generated Image

Although XRP is holding near the $1.33 support line, it remains trapped below key moving averages and unable to escape the sell-dominant trend.

According to crypto-focused media outlet FXStreet on May 27 (local time), XRP is trading sideways near $1.33. Market participants are refraining from active buying, observing the uncertainty surrounding a potential memorandum of understanding between the US and Iran, while key moving averages continue their downward trend, weakening the technical outlook.

Cryptocurrency market sentiment has cooled rapidly. The Fear & Greed Index dropped from 34 the previous day to 25, entering the extreme fear zone. FXStreet reported that if investment sentiment for risk assets like XRP deteriorates further, recovery potential could be limited, and the risk of further losses could increase.

Institutional demand remained stable over the past two weeks, but inflows into XRP spot ETFs were limited. According to SoSoValue data, XRP spot ETFs saw a net inflow of $1.55 million on Tuesday, with average cumulative inflows totaling $1.41 billion and net assets amounting to $1.12 billion. In the derivatives market, retail investor funds slightly increased to $2.93 billion on Wednesday, up from $2.85 billion the previous day.

The price structure still favors sellers. XRP is trading below its 50-day Exponential Moving Average (EMA) of $1.40, its 100-day EMA of $1.47, and its 200-day EMA of $1.68. The daily chart's Relative Strength Index (RSI) remains near 39, and the Moving Average Convergence Divergence (MACD) histogram is still in negative territory, indicating that selling pressure remains dominant despite intermittent rebounds.

On the upside, the $1.40 50-day EMA is presented as the first resistance level. Subsequently, the $1.47 100-day EMA and the $1.68 200-day EMA form additional resistance zones, limiting recovery attempts. On the downside, an uptrend line near $1.31 was identified as the first major support, and FXStreet analyzed that a daily close below this floor could open the door to a deeper correction.

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