XRP Defends $1.10 Support as Rising ETF Inflows Clash With Key Resistance

XRP has stabilized above the $1.10 threshold after bouncing back from four-month lows on elevated trading volume. Despite this recovery, the digital asset remains constrained below key resistance levels even as underlying market dynamics shift. Investors are closely watching a divergence between technical price barriers and strengthening on-chain metrics. This stabilization comes at a critical juncture for the token. While short-term price action remains constrained, underlying capital flows suggest a potential shift in market structure. Specifically, exchange outflows have continued to build, indicating that investors may be moving their holdings into private custody or long-term storage rather than preparing to sell. Simultaneously, inflows into XRP exchange-traded funds (ETFs) are showing signs of acceleration. This institutional appetite provides a structural bid that could cushion further downside, even as bearish pressure lingers at overhead resistance levels. The combination of spot exchange depletion and steady fund inflows typically points to accumulation, though the immediate price action has yet to reflect this fundamental divergence. For market participants, the next three days are crucial for determining whether this $1.10 level will serve as a durable floor. A sustained hold above this marker could embolden buyers to challenge the overhead resistance that has capped recent recovery attempts. Conversely, if the elevated volume seen during the bounce fades without a corresponding breakout, the token could face renewed tests of its recent multi-month lows. Traders are monitoring these order book imbalances and fund flows to gauge whether the current consolidation is a prelude to a breakout or merely a temporary pause in a broader downtrend. With institutional vehicles absorbing supply and retail exchange reserves declining, the liquidity profile of the asset is tightening, which could amplify price volatility once a decisive directional move occurs. Analysts suggest keeping a close eye on the daily close relative to the $1.10 mark, as a failure to maintain this posture could quickly invalidate the near-term bullish accumulation thesis.