The XRP price is stabilising around a prominent technical level even as institutional flows wear out, surging questions regarding the upcoming move of the token. At the time of writing, XRP was trading at $1.41 on March 13, getting around 2.4% on the day, as per the data from CoinMarketCap.
The token has been combining in a narrow range after diminishing from highs around $1.90 earlier this year, indicating that the market is looking for a new directional catalyst. Institutional sentiment seems to be softening.
The data tracking XRP spot exchange-traded funds reveals daily net outflows of around $6.08 million; however, total net assets over these products are still close to $967 million.
The chart shows that after various sessions of inflows earlier in March, ETF activity has turned negative with various red days in a row, indicating that some institutional investors may be suppressing exposure or locking in profits after last gains.
Regardless of the cooling ETF demand, XRP has managed to sustain support over the $1.40 level, an area that traders are nearly watching as a potential pivot for the upcoming move.
Keeping a technical perspective, momentum indicators indicate that bearish pressure is slowly declining. The relative strength index (RSI) now stands around 50, showing neutral momentum and a balance between purchasers and sellers.
At the same time, the Awesome Oscillator has gradually surged toward the zero line after spending various weeks in the negative area, a shift that normally shows weakening downside momentum and the probability of a trend reversal.
Extra support for market sentiment could come from advancements around Ripple, which lately introduced a $750 million share buyback programme targeted at repurchasing shares from early investors and employees.
However, the buyback does not directly impact XRP supply; it is mostly seen by market participants as a sign of confidence in the wider ecosystem surrounding the token.
