XRP fell back below $1.50 on Thursday, barely a day after breaking through $1.60, even as US exchange-traded funds continued to attract fresh money.

The token traded around $1.50 after reaching roughly $1.66 in the previous session, turning what had looked like a convincing breakout into a sharp reversal.

Yet spot XRP ETFs drew another $18.04 million on September 23, lifting cumulative net inflows to about $1.75 billion.

XRP hit the supply wall analysts warned about

Crypto analyst Ali Martinez had already identified $1.60 as a major resistance area before XRP reached it.

On-chain distribution data showed about 2.5 billion XRP had previously changed hands around that level, creating a sizeable cost-basis cluster where holders could be tempted to take profits.

“That’s the next major level I’m watching for potential profit-taking,” Martinez said.

The warning proved timely, as XRP pushed through $1.60 and briefly reached around $1.66, but buyers failed to establish the former resistance zone as support.

That distinction matters, as breaking resistance intraday was only the first test; holding it was the more important one. Once XRP slipped back through $1.60, traders who chased the breakout also had an incentive to exit.

ETF inflows could not absorb all the selling

Institutional demand did not disappear during the reversal.

SoSoValue data showed US spot XRP ETFs attracted $18.04 million on September 23, after roughly $20 million the previous day.

Bitwise accounted for $11.54 million of Wednesday’s inflow, while Franklin Templeton added about $6.50 million.

But another source of potential selling was building.

FXStreet analyst John Isige noted that XRP reserves on Binance had risen to about 2.68 billion tokens.

“Higher exchange reserves suggest investors are moving tokens to the exchange to trade or sell and lock in profits amid higher prices,” Isige wrote.

That does not prove the tokens were sold. Exchange deposits simply increase the amount of XRP available to trade.

The broader point is that ETF flows capture only one source of demand. Roughly $18 million of daily buying can still be overwhelmed by profit-taking across a much larger spot market.

The next test has shifted towards $1.43

The selloff now puts lower support levels back into focus.

FXEmpire analyst Alejandro Arrieche wrote on Wednesday that selling pressure had increased above $1.50 and warned: “We could expect a retreat to $1.43 or so after such a strong rally.”

He still viewed such a move as potentially temporary, but Thursday’s reversal makes that level more relevant.

Macro conditions have also become less supportive. Bitcoin slipped below $85,000 as rising Treasury yields pressured crypto and other risk assets.

XRP’s next test is therefore no longer whether it can break $1.60. Holding roughly $1.43 to $1.45 may determine whether this becomes a healthy reset or a failed rally.

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