XRP has been trading above $1.13, tracing what chart watchers call a cup and handle formation. The pattern typically signals a bullish continuation, with the next key level sitting at $1.21. But the technical setup is quietly losing its fuel.
Spot ETF inflows into XRP have fallen off a cliff. Weekly figures dropped from $131 million to just $12 million, a decline of more than 90% that strips away the institutional tailwind the breakout would need to stick. Without fresh money coming in from that side, the $1.21 target starts to look like a ceiling rather than a stepping stone.
The institutional picture is getting complicated
It's worth putting this in context. Earlier this year, XRP whales were accumulating while retail holders were selling, a dynamic analysts read as a late-bear signal. That kind of smart-money confidence seems harder to square with the ETF data now, unless larger players are simply shifting their exposure away from listed products and into direct holdings.
The regulatory backdrop adds another layer. The CLARITY Act could significantly reshape how institutions approach XRP over the coming years, but that's a slow-moving story. Right now, the chart is running ahead of the fundamentals, and the ETF inflow numbers suggest institutional appetite is cooling, at least for this particular vehicle.
Cup and handle patterns do fail. A drop below the handle's low would likely bring sellers back in force, and the $12M inflow figure gives bulls very little margin for error heading into the next few sessions.
This article is for informational purposes only and does not constitute financial advice. Crypto markets carry significant risk; always do your own research before making any investment decisions.
