XRP declines persist amid weakening derivatives, ETF interest

Ripple (XRP) is edging lower for the third consecutive day, trading around $1.46 at the time of writing on Thursday. A more than 9% decline from weekly highs of $1.61 reinforces the deteriorating market sentiment after Federal Reserve (Fed) Chair Jerome Powell’s remarks on Wednesday, suggesting that there are no foreseeable interest rate cuts unless there is a clear downtrend in inflation.

XRP under pressure as retail and institutional demand fades

The XRP derivatives market is once again facing a slump in retail interest, as futures Open Interest (OI), which reflects the notional value of outstanding futures contracts, shrinks to $2.67 billion on Thursday from $2.79 billion the previous day.

Looking back, the increase in OI from $2.11 billion, the lowest level in March, to a weekly high of $2.87 billion on Tuesday coincided with XRP rising to $1.61, underscoring the importance of retail demand. Therefore, monitoring OI patterns could help traders gauge interest in XRP and plan accordingly.

Institutional-related interest remains shaky, as reflected by muted activity in XRP spot Exchange-Traded Funds (ETFs) on Wednesday. SoSoValue data shows that US-listed ETFs recorded zero flows, leaving cumulative inflows at $1.21 billion and total assets under management at $1.02 billion.

So far this week, outflows total $1.34 million through Wednesday, undermining institutional interest in XRP digital investment products.

Technical outlook: XRP risks a deeper pullback as technicals falter

XRP is trading around $1.46 amid a neutral-to-bearish outlook as the price extends its decline from the weekly high of $1.61. The remittance token sits below a sequence of falling moving averages, with the 50-day Exponential Moving Average (EMA) near $1.51, the 100-day EMA around $1.69, and the 200-day EMA close to $1.94, which confirms a broader downtrend.

The Moving Average Convergence Divergence (MACD) indicator remains above its signal line on the daily chart, though recent contraction in the histogram bars shows fading upside momentum after the XRP spike to $1.61. Moreover, the Relative Strength Index (RSI) around 52 is moving toward neutral territory, aligning with the ongoing correction.

XRP remains capped well below the long-standing descending resistance trend line, which continues to frame the broader structure as corrective rather than bullish.

On the downside, initial support lies around $1.45. A break below this level would expose deeper support toward $1.40, where the recent low aligns with the broader consolidation floor. Looking up, immediate resistance is seen at $1.50, followed by $1.61, the latest swing peak that halted the prior advance.

(The technical analysis of this story was written with the help of an AI tool.)