XRP Tests $1.32 Support Amid Slowing ETF Demand and Market Weakness

XRP has experienced a notable decline of nearly 7% over the past week, primarily due to its inability to surpass the $1.60 resistance level. As traders closely monitor the $1.32 support zone, the cryptocurrency's trading volume remains robust at around $3 billion, representing nearly 4% of its circulating market capitalization.

In October, XRP-linked exchange-traded funds (ETFs) have seen a dramatic slowdown in inflows, attracting only $4 million so far, a stark contrast to the $121.4 million recorded in September, according to SoSoValue. This decline in ETF demand has raised concerns about the potential for further price corrections as XRP seeks to stabilize.

Onchain data indicates that XRP inflows to exchanges have surged, reaching their highest levels since July 2026, suggesting that holders may be preparing to sell. The Crypto Fear and Greed Index has also dropped from a high of 80 to 58, reflecting a shift in market sentiment.

Analysts note that the daily chart shows XRP near its 200-day exponential moving average, with $1.32 identified as a critical support level. If this level holds, it could provide a foundation for a price rebound; however, if selling accelerates, the next support level is around $1.26.

XRP Decentralization Debate Intensifies

Justin Bons, founder of Cyber Capital, has labeled the sale of XRP to retail investors as "decentralized" as outright fraud, igniting a fierce debate over the true nature of the XRP Ledger's decentralization.

The discussion centers around the control exerted by validator lists, which Bons argues gives a small group significant power over the network. He expressed concerns about undisclosed software changes that could jeopardize security for network participants and investors.

As of October 9, a proposed amendment could activate if validators meet the network's voting requirements, further complicating the decentralization narrative.

David Schwartz, Ripple's CTO Emeritus, counters Bons' claims by stating that anyone can run a node or validator on the XRP Ledger, asserting that the Unique Node List does not confer real governance control.

The upcoming Nasdaq debut of Evernorth, the XRP treasury company backed by Ripple, scheduled for October 12, 2026, is expected to amplify discussions about XRP's decentralization and transparency.

With Evernorth holding approximately 473 million tokens and backed by major investors, the market will closely observe how this launch influences perceptions of XRP's governance structure.