XRP holds above support as crypto prices rebound
|- XRP hovers above $1.33 support as crypto prices broadly recover amid the Middle East war.
- XRP digital asset investment products recorded $30 million in outflows last week.
- Retail demand remains on the back foot, with futures Open Interest averaging $2.25 billion on Monday.
Ripple (XRP) is holding above $1.35 at the time of writing on Monday as global markets continue pricing in the war in the Middle East. The remittance token faced significant capital outflows last week, reflecting sticky risk-off sentiment. Moreover, retail interest in XRP remains low, weighing on the price.
XRP demand cools amid capital outflows
XRP-related digital asset investment products experienced outflows of $30 million last week, according to a CoinShares report. Total assets under management stand at roughly $2.4 billion, with year-to-date inflows at $123 million.
Investor interest shifted to Bitcoin (BTC), recording approximately $521 million in inflows last week. Ethereum (ETH) and Solana (SOL) also saw notable inflows of $88.5 million and $14.6 million, respectively.
“Digital asset investment products recorded inflows of US$619M last week, highlighting that the initial market reaction to the Iran crisis has been supportive for the asset class,” the CoinShares report states.
Interest in XRP spot Exchange-Traded Funds (ETFs) also took a back seat, with outflows totaling $4 million last week. Despite the cooling demand, cumulative inflows remain at $1.24 billion, and net assets are roughly $983 million.
The persistent drawdown in XRP prices since the record high of $3.66 in July has driven retail investors to the sidelines, leading to a massive slump in futures Open Interest (OI), which holds steady at $2.25 billion on Monday.
In contrast, the OI peaked at $10.94 billion in July, but the persistent selling in the derivatives market undermines retail interest. OI reflects the notional value of outstanding futures contracts.
Technical outlook: XRP ticks up as bulls tighten their grip
XRP is trading at $1.36, with the Moving Average Convergence Divergence (MACD) indicator staying above its signal line, indicating slightly bullish momentum. Green histogram bars are expanding again, prompting traders to increase their exposure. Meanwhile, the Relative Strength Index (RSI) at 43 indicates sub-50 momentum, consistent with a market struggling to shift bullish after extended drawdowns.
Moreover, the XRP price continues to grind lower below the 50-day, 100-day and 200-day Exponential Moving Averages (EMAs), keeping the broader bias bearish despite the recent stabilization in closing prices. The SuperTrend line near $1.58 remains well above spot and serves as an overarching dynamic cap, aligning with the downward-sloping moving average that underscores persistent selling pressure on rallies.
Initial resistance emerges around the $1.40 pivotal threshold, where recent intraday upticks have faded, with a stronger barrier at the 50-day EMA around $1.53 and then the SuperTrend indicator's region. A sustained break above $1.58 would be needed to challenge the broader bearish narrative and expose the 100-day EMA zone at $1.75.
On the downside, initial support emerges at the daily low near $1.33, with a break opening the way toward the February 28 trough at $1.27.
Ripple FAQs
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.
(The technical analysis of this story was written with the help of an AI tool.)
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