XRP has experienced a dramatic decline, slipping below the crucial $2 mark despite significant inflows into its exchange-traded funds (ETFs). In fact, the XRP ETFs have seen an impressive $1 billion in inflows over the past three weeks, showcasing the growing interest from institutional investors. However, this surge in investment has not been enough to prevent the cryptocurrency from losing key technical support levels. Market analysts are now pondering how low XRP's price might fall, with some suggesting a potential drop to as low as $1.40.

For 20 consecutive days, XRP ETFs have recorded inflows, totaling around $1.2 billion, which reflects a strong institutional demand for XRP. The Franklin XRP ETF has been leading the charge, with significant inflows boosting its assets to $175 million. Despite this positive momentum in ETF investments, XRP's price trajectory has remained bearish. Over the past ten days, the price has fallen more than 11%, marking a troubling trend for holders and investors alike.

The current price of XRP is facing significant challenges, especially after falling below the psychological support level of $2. As the market grapples with this downturn, the XRP/USDT pair is hovering around $1.93, a level that offers limited support. The data from Glassnode indicates that there are fewer holders willing to defend this price, raising concerns about a further decline.

With the market dynamics shifting, many analysts are closely watching key support levels. A significant drop below $1.90 could trigger a cascade of sell-offs, pushing the price down toward the next support level at $1.78, where a substantial number of XRP were previously purchased. If XRP fails to hold at this level, it could plunge even further, potentially testing the local low around $1.61.

As the downward momentum builds, the relative strength index (RSI) has reached its lowest level since July 2024, indicating increasing bearish sentiment among traders. A breach below the $2 mark could set off a chain reaction, leading to declines down to $1.75 and eventually down to $1.61.

In the broader context, while XRP ETFs are garnering significant investor interest, the cryptocurrency market remains volatile. Spot Bitcoin ETFs, for instance, have only seen $49 million in inflows on the same day that XRP has been thriving. Meanwhile, Ethereum's ETFs are struggling, with $19.4 million in outflows. The contrasting fortunes among these assets highlight the unique challenges XRP faces despite its strong institutional backing.

Looking ahead, traders and analysts are left to speculate on the future of XRP. Will it recover and reclaim its footing above the $2 mark, or will the bearish sentiment continue to dominate? As the market evolves, it’s crucial for investors to remain vigilant and informed, understanding the risks inherent in crypto investments.

In conclusion, while XRP ETF inflows reflect a burgeoning institutional interest, the cryptocurrency itself is in a precarious position, battling significant downward momentum. Investors are advised to keep a close eye on the upcoming support levels and the broader market trends as they navigate this challenging landscape.