XRP risks further decline weighed down by low retail interest
|- XRP pulls back from Monday’s high of $1.95, weighed down by a weak technical structure.
- XRP faces low retail demand, with futures Open Interest near yearly lows around $3.29 billion.
- ETF interest more than doubled on Monday, as total inflows surged to nearly $8 million from Friday’s $3.43 million.
Ripple (XRP) is trading around $1.88 at the time of writing on Tuesday, correcting from the previous day’s high of $1.95. The cross-border remittance token remains under immense pressure amid a weak technical structure.
Despite steady institutional interest, retail demand continues to lag, suggesting a lack of confidence in XRP’s ability to sustain an uptrend.
XRP extends ETF inflows as derivatives momentum fades
Retail interest in XRP has failed to gain traction, aligning with a persistent risk-off sentiment across the crypto market. The futures Open Interest (OI) hovers at $3.29 billion on Tuesday, slightly above the yearly low of $3.26 billion, recorded on Monday.
OI tracks the notional value of outstanding futures contracts. As it declines, it signals a lack of investor conviction in XRP, which weakens price momentum as traders close positions rather than open new ones.
Meanwhile, XRP continues to attract sustained interest from Exchange Traded Funds (ETFs), with a four-day inflow streak. Data by SoSoValue shows that XRP spot ETFs drew nearly $8 million in inflows on Monday.
The cumulative total inflow now stands at $1.24 billion, and net assets at $1.36 billion. Bitwise’s XRP ETF outpaced the rest of the products with an inflow of about $5.3 million.
Technical outlook: XRP trades under persistent pressure
XRP failed to extend its recovery above $2.00 on Monday, stalling at $1.95 before trimming part of the gains as headwinds intensify. The Relative Strength Index (RSI) is at 42 on the daily chart, suggesting bearish momentum is building. A further decline in the RSI toward the oversold region would accelerate the downtrend, with XRP dropping to Sunday's low of $1.81. Below this demand zone, the April low at $1.62 marks the next key support.
The Moving Average Convergence Divergence (MACD) line remains below the signal line on the same chart, confirming XRP’s short-term bearish outlook. Histogram bars expanding below the zero line could encourage investors to close existing positions until a clear recovery path is established.
Still, XRP has a chance to steady its recovery with a decisive move above the $1.90 immediate resistance. Despite that, investors should temper their expectations until XRP rises above the supply cluster between the 50-day EMA at $2.02 and the 200-day EMA at $2.38.
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.
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