"This is a crossroads"...XRP, warning of sharp drop if it fails to surpass $1.40

▲ Ripple (XRP) ©

XRP (Ripple) is at a crossroads regarding its recovery to $1.40, despite strong positive news of institutional fund inflows, increasing tension over its short-term direction.

According to investment media FXLeaders on April 29 (local time), XRP is currently fluctuating between $1.38 and $1.40, showing limited rebound after breaking away from a key support line. While short-term technical recovery attempts continue, the market structure remains unstable.

The most notable change is the institutional fund flow. Throughout April 2026, the XRP spot ETF recorded the strongest inflows, with total assets under management exceeding $1.5 billion. Weekly inflows of approximately $55 million also continued, quickly reversing the fund outflow trend seen in March. Goldman Sachs already holds a position worth $153.8 million, and it was found that 18% of institutional investors hold XRP, with 25% planning additional purchases this year.

Positive signals are also continuing on the market infrastructure front. Ripple has expanded cross-border payments through cooperation with Korea's K-Bank and is pursuing a tokenized government bond settlement project with Kyobo Life Insurance. The supply of RLUSD stablecoin has also expanded to around $1.6 billion, contributing to improving XRPL liquidity. Furthermore, with the resolution of the US Securities and Exchange Commission (SEC) issue and ongoing discussions about the US crypto market structure bill and the Clarity Act, the regulatory environment is gradually improving.

However, the technical trend remains conservative. XRP is attempting to rebound after breaking below $1.40, but it remains below the 50-day and 200-day moving averages, failing to escape the downtrend. After hitting resistance in the $1.425-$1.43 range, downward pressure continued, and the recent rebound in the $1.36-$1.38 range is also analyzed to be a temporary rebound rather than a trend reversal.

The key variables in the current market are clear. Upper resistance is condensed to $1.40-$1.445, and lower support levels are $1.383 and $1.36. In the short term, if it fails to recover $1.40, the possibility of retesting $1.36 opens up. Conversely, if ETF fund inflows and policy momentum align, an upside breakout scenario remains valid. The market has entered a phase where it is highly sensitive to FOMC results and news related to the Clarity Act.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*