XRP extends sell-off as weak derivatives deepen downside risk
|- XRP trades under pressure, closing in on $1.30 support on Tuesday.
- XRP ETFs experienced outflows of $2.3 million on Monday following muted activity on Thursday and Friday.
- The XRP derivatives market remains weak, with futures Open Interest steadying at $2.54 billion.
Ripple (XRP) holds above $1.30 at the time of writing on Tuesday, sustaining losses for three consecutive days amid war-driven weak market sentiment. The remittance token is grappling with overhead pressure amid narrowing institutional and retail demand.
This waning demand comes as XRP hovers near crucial support levels, making the token vulnerable to further losses if selling momentum intensifies.
XRP declines amid cooling institutional interest
Interest in XRP investment products has taken a hit in recent weeks, driving capital exit across Exchange-Traded Funds (ETFs) and derivatives. US-listed XRP spot ETFs registered outflows totaling roughly $2.3 million on Monday, following muted activity last Thursday and Friday.
Cumulative inflows stand at $1.21 billion, with net assets under management averaging $929 million, according to SoSoValue data. If risk appetite fails to improve and capital exit extends, recovery in XRP price could remain a pipe dream in the short to medium term.
Retail interest remains subdued, with Open Interest (OI) averaging $2.54 billion on Monday and Tuesday — reflecting the total value of outstanding futures and options contracts. In contrast, OI peaked at a record $10.94 billion in July, coinciding with the price hitting an all-time high of $3.66. This sharp decline has dampened retail investor interest in the token and signals their reluctance to take on additional risk.
Technical outlook: XRP extends weakness as $1.30 support holds
XRP is edging lower at $1.31 amid a short-term bearish trend. Daily closes remain well below the 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs), which are clustered between $1.45 and $1.88, keeping the broader trend under pressure. The Moving Average Convergence Divergence (MACD) indicator slips further below the signal line as the red histogram bars expand on the daily chart, suggesting strengthening bearish momentum.
At the same time, the Relative Strength Index (RSI) is at 37 on the same chart, staying below the 50 midline and reinforcing a downside-tilted tone rather than oversold exhaustion.
XRP's initial resistance emerges at $1.36, where recent minor rebounds stalled with a stronger cap expected at $1.40 and then $1.45, the latter aligning with the 50-day EMA. On the downside, immediate support is seen at $1.30, where the latest breakdown occurred, and intraday buyers have attempted to stabilize the price action. A decisive close below $1.30 would open the way toward $1.25 and then $1.22, exposing the broader corrective leg as long as momentum remains bearish.
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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