XRP price came under renewed pressure on October 7, falling 5.21% to $1.4246 and breaking below the $1.50 level that had held for roughly two weeks. The move stood out even in a weaker crypto market, with XRP declining more sharply than Bitcoin and Ether as leverage, fading fund inflows, and delayed catalysts weighed on sentiment.
The most important near-term level is now the $1.37 to $1.40 support zone. That area combines the 50-day moving average, longer-term trend support, and a cluster of technical levels that could determine whether this is a routine pullback after a strong third quarter or the start of a deeper correction.
XRP price also entered the session with rising volume and a clear deterioration in market structure. By early afternoon, turnover had reached 360.57 million XRP, already far above the prior session’s 208.95 million, signaling that the sell-off was attracting both forced selling and opportunistic buyers.
Key Facts
- XRP traded at $1.4246 on October 7, down 5.21% on the day after touching an intraday high of $1.4994 and a low of $1.4236.
- Weekly inflows into spot XRP funds fell to $4.74 million from $75.6 million the prior week, a drop of roughly 94%.
- XRP is down 6.5% over seven days, compared with a 0.9% decline for the broader crypto market over the same period.
- Perpetual futures volume ran at 19.7 times spot volume, highlighting the outsized role of leveraged trading in price discovery.
- The planned Nasdaq debut of XRP-focused treasury company Evernorth, holding about 473 million XRP, was pushed to October 12 from earlier in the week.
XRP Price Outlook
The latest drop in XRP price reflects a combination of macro and token-specific pressure. On the macro side, the 10-year U.S. Treasury yield climbed to 5.345%, its highest level since 2002, tightening financial conditions for speculative assets. Brent crude rose above $101, while equity markets also softened. In crypto, nearly $700 million in leveraged positions were liquidated across the market over 24 hours.
For XRP specifically, the timing is notable. The token had rallied more than 45% in the third quarter, supported by $307.9 million in spot fund inflows. But that demand has lost momentum. The market was also leaning heavily on leverage, and once XRP slipped below $1.50 and then under its 20-day exponential moving average near $1.4775, sellers gained control. With perpetual futures activity dwarfing spot trading, short-term positioning appears to be driving price action more than long-term accumulation.
Who is affected most depends on time horizon. Short-term traders face elevated volatility, especially with open interest in XRP derivatives still around $4.66 billion. Longer-term holders are watching whether institutional demand merely slowed or is beginning to reverse. For now, spot XRP funds remain in positive territory over a 12-week stretch, but the sharp deceleration in inflows has weakened one of the token’s key supports.
The market is no longer asking whether XRP can hold $1.50; it is asking whether $1.37 to $1.40 can preserve the broader recovery trend.
Why the $1.37 to $1.40 Zone Matters
The support area between $1.37 and $1.40 has unusual technical significance because several indicators converge there. The 50-day moving average sits near $1.40, while the 200-day and 200-week averages are clustered around $1.37. When multiple time-frame supports line up in a narrow range, traders tend to treat that area as a decisive battleground.
If XRP holds this band and spot demand improves, the recent breakdown may be remembered as a leverage flush rather than a trend reversal. If it fails, the next downside area near $1.32 could quickly come into play, especially if broader crypto markets remain under pressure and Bitcoin loses support near its own 50-day average.
Implications for Investors
For investors, the immediate issue is whether XRP’s weakness is mainly technical or a sign that the third-quarter rally has run out of institutional sponsorship. The data suggest demand has not disappeared, but it has slowed sharply. Cumulative inflows into spot XRP products remain substantial, around $1.79 billion to $1.8 billion, and assets under management are near $1.7 billion. That argues against a full collapse in investor appetite, but it also means price may need to fall further to attract fresh buyers.
Risk management matters more than conviction at current levels. XRP has already broken one important floor at $1.50, and resistance now begins around $1.45, then $1.48, with a heavier ceiling at $1.52 to $1.56. That creates a narrower margin of safety for new entries unless the token either stabilizes inside the $1.37 to $1.40 zone or reclaims the lost range with stronger spot participation. Investors adding exposure before confirmation are effectively betting that support will hold while leverage is still being unwound.
There are also event-driven watch points ahead. The delayed Evernorth listing on October 12 could matter because a publicly traded XRP treasury vehicle may create another channel for institutional access. Scheduled XRP Ledger upgrades and the broader interest-rate backdrop could also influence sentiment. A recovery in weekly fund inflows toward the $50 million to $75 million range would likely be more constructive than headline catalysts alone, because it would show real cash demand returning to the market.
For now, XRP remains at an important inflection point. A successful defense of $1.37 to $1.40 could reset the market for a rebound, while a break below that zone would shift attention to deeper downside targets and confirm that the recent rally has lost momentum.