XRP declines as ETF inflows fail to offset rising selling pressure
- XRP faces increasing selling pressure, extending its decline from below $1.45 on Tuesday.
- XRP ETF demand surged to $25 million on Monday, reflecting sustained investor interest despite broader market volatility.
- The 50-day EMA continues to limit XRP’s advance below $1.50, with the RSI decline signaling increasing potential for further downside.
Ripple (XRP) scales downward, trading at $1.45 at the time of writing on Tuesday. XRP is currently trading about 3% below its weekly open at $1.47 and approximately 4% below its monthly high of $1.51, highlighting mounting overhead resistance.
XRP demand holds firm across retail and institutions
The XRP derivatives market continues to steadily increase, with futures Open Interest (OI) reaching a three-month high of $3.01 billion on Tuesday, up from $2.87 billion the previous day.
OI has climbed 30% from its yearly low of $2.11 billion recorded in early March. Further gains would solidify retail investor dominance and bolster the probability of a sustained recovery as risk appetite grows.
US-listed XRP spot Exchange-Traded Funds (ETFs) have also gained traction since Friday, with inflows nearing $26 million on Monday. Cumulative inflows stand at $1.35 billion, with net assets under management averaging $1.18 billion, according to SoSoValue.
The surge in institutional and retail interest aligns with steady market sentiment, as reflected by the Crypto Fear & Greed Index rising to 49 in the fear territory on Tuesday, up from 48 the previous day.
Technical outlook: XRP extends correction as technical weakness builds
XRP trades at $1.45, holding above the 50-day Exponential Moving Average (EMA) at $1.42 and the latest SuperTrend support at $1.33, hinting at a mildly constructive tone. Still, the broader structure remains capped, as price remains below the 100-day EMA at $1.50 and well below the 200-day EMA at $1.71.
On the daily chart, the Moving Average Convergence Divergence (MACD) histogram is marginally positive and rising, while the Relative Strength Index (RSI) hovers near 57, suggesting improving but not yet overextended upside momentum within this still medium-term constrained backdrop.
On the topside, initial resistance is seen at the 100-day EMA around $1.50, with a downward resistance trendline at a similar level. A daily close above this confluence would open the way toward the higher barrier at the 200-day EMA around 1.71. On the downside, immediate support is aligned with the daily low at $1.44, followed by firmer demand at the 50-day EMA at $1.41. A break below that demand cluster would expose the next SuperTrend support region near $1.33.
(The technical analysis of this story was written with the help of an AI tool.)
Cryptocurrency metrics FAQs
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value.
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
Author
John Isige
FXStreet
John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren
