XRP stabilizes amid increased inflows and derivatives market activity
- XRP extends sideways trading in a range between $1.45 and $1.50.
- The XRP derivatives market sustains a mild increase in futures Open Interest to $2.56 billion.
- XRP digital investment products recorded $33.4 million in inflows last week, bringing total assets under management to $2.5 billion.
Ripple (XRP) is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.
Last week's United States Consumer Price Index (CPI) report showed that inflation eased in January, fuelling optimism for at least two interest rate cuts by the Federal Reserve (Fed) in 2026. The increased likelihood of rate cuts tends to favor risk assets such as XRP, but the market's overall risk-off tone continues to weigh on the token.
Institutional and retail investors gain modest interest in XRP
XRP's digital investment products recorded inflows last week, outpacing major assets such as Bitcoin (BTC) and Ethereum (ETH).
Total inflows averaged $33.4 million in the week through to Friday, according to CoinShares, bringing the cumulative assets under management (AUM) to $2.55 billion.
In contrast, Bitcoin and Ethereum led with outflows totaling $133.3 million and $85.1 million, respectively. Outflows across the board totaled $173 million last week, with CoinShares reporting that $3.74 billion has been withdrawn over the past four weeks.
"Digital asset investment products saw a fourth consecutive week of outflows totalling US$173m, bringing the cumulative four-week run of outflows to US$3.74bn," CoinShares states.
Meanwhile, XRP spot Exchange-Traded Funds (ETFs) recorded total inflows of approximately $7.65 million last week. Inflows resumed on Friday, with investors depositing $4.5 million into XRP ETFs. Steady inflows support positive market sentiment, increasing the odds of a sustainable price rebound.
The XRP derivatives market paints a slightly different picture, with futures Open Interest (OI) rising to $2.56 billion on Monday from $2.51 billion on Sunday. Retail interest has steadied since Friday, when OI averaged at $2.26 billion. Maintaining this positive trend could improve sentiment surrounding the token and stop the price decline.
Technical outlook: XRP holds higher support amid price volatility
The cross-border money transfer token is hovering at $1.48, while sitting well below the declining 50-day Exponential Moving Average (EMA) at $1.73, 100-day EMA at $1.94, and 200-day EMA at $2.14. This stack of falling averages caps rebounds and preserves a downside bias.
However, other technical indicators, such as the Parabolic SAR, print below XRP's spot price at $1.19, offering trailing support as the market attempts to establish a firm baseline.
The Moving Average Convergence Divergence (MACD) line has crossed above the signal line on the daily chart, with the green histogram bars expanding in support of a short-term bullish outlook. Similarly, the Relative Strength Index (RSI) stands at 42.5 and edges higher on the same chart, suggesting bearish pressure is easing, albeit gradually.
A descending trend line from 3.66 (record high) limits upside, with resistance near $2.11. A daily close above $1.73 (50-day EMA) would open the door to $1.94 (100-day EMA), while a break below the intraday low of $1.45 could revive selling pressure.
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.)
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
