Wednesday, XRP retraced to around $2.22. Under the influence of market panic and profit-taking pressure, short-term support levels have experienced some fluctuations. Notably, the SOPR indicator dropped from 1.08 to 1.05, indicating that holders' enthusiasm for maintaining the upward trend is waning.

From a technical perspective, the situation is somewhat tricky. If XRP breaks through the descending trendline upward, it could surge toward $3.00—this presents a promising upside potential. Conversely, if it falls below the $2.22 threshold, attention should be paid to support levels at $2.07 and even $2.00.

The capital flow is quite interesting. On Tuesday, capital inflow decreased from $46 million the previous day to $19 million, appearing somewhat subdued. But don’t be too pessimistic; the XRP ETF listed in the US has been consistently attracting capital since November last year, with a total inflow of $1.25 billion, and its net assets have reached $1.62 billion—this indicates that institutional confidence in holding the coin remains intact.

Regarding technical indicators, XRP still remains above the 100-day moving average. The RSI has pulled back from the overbought zone above 80 to 64, which is a normal correction. However, the MACD shows a divergence signal, hinting at potential room for an upward breakout. In short, while there is short-term pressure, the long-term fundamentals and institutional allocations are laying the groundwork for subsequent market movements.