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The institutional investors have started to ride in, but they are finding the XRP (XRP-USD) battlefield a lot tougher than expected. On Thursday, XRP is struggling to hold its ground despite an influx of new support. While Ripple-linked investment funds saw $3.32 million in new ETF inflows this week, the price of the token still slid 4%, dropping from $1.37 down to $1.33.

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The latest data shows a confusing ping ponging between big buyers and active sellers. While the shift back to positive ETF inflows is a good sign, especially after a rough March, the actual price action tells a different story.

Sellers seem to be using every small rally as an opportunity to exit their positions rather than building new ones. Essentially, XRP is underperforming the broader market, signaling that capital is rotating into other assets even as XRP tries to stabilize. High-volume selling accelerated as soon as the price hit the $1.38 mark, proving that there is a heavy ceiling of supply waiting to be sold at that level.

Market experts are pointing to a distribution phase. This is where large amounts of the token move from long-term holders to shorter-term traders, often happening before a larger move in price.

Rising trading volume alongside falling prices is usually a warning sign. It confirms that the selling pressure is real and not just a low-volume fluke. Currently, XRP is forming a pattern of lower highs, which keeps the overall trend pointing downward. Traders are now watching the $1.33 support level very closely. If that fails to hold, the next “safety net” is all the way down at $1.28.

For the mood to improve, XRP needs to do more than just stop falling. It has to reclaim the $1.35 level and then break back above the $1.38 resistance that has rejected it multiple times this week.

Until those levels are broken, any bounce in price is likely just a weak recovery within a bigger downtrend. The thin exchange liquidity means that if the $1.28 floor breaks, the move downward could happen very quickly. Investors are hoping that the recent ETF inflows are the start of a bigger trend, but for now, the sellers are still the ones in control of the steering wheel.

At the time of writing, XRP’s price is sitting at $1.3298.

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