XRP consolidates in narrow range as on-chain activity and ETF demand weaken
- XRP trades range-bound between support at $1.30 and resistance at $1.40 amid suppressed market sentiment.
- On-chain activity for XRP remains subdued, with the number of active addresses declining to near 16,000.
- US-listed XRP spot ETFs experienced outflows of approximately $661,000 on Thursday, suggesting a waning risk appetite among institutional investors.
Ripple (XRP) hovers around $1.34 at the time of writing on Friday, as market participants turn their attention to ceasefire talks between the United States (US) and Iran in Pakistan over the weekend.
Despite the fragile ceasefire brokered earlier this week, market sentiment has remained significantly suppressed, as reflected in the crypto Fear & Greed Index, which stands at 16 on Thursday, in extreme fear territory. The deteriorating sentiment suggests that investors lack confidence in the crypto market’s ability to sustain recovery, which could explain the XRP price rejection at $1.40 on Tuesday.
XRP on-chain activity subdued as ETFs turn bearish
The number of addresses actively transacting on the XRP Ledger (XRPL) by sending or receiving assets has declined to near 16,000 as of Thursday, from roughly 18,000 the previous day.
CryptoQuant data shows that active addresses surged to nearly 32,000 on Sunday, underscoring growing user engagement that preceded the upswing to $1.40 on Tuesday. If on-chain activity does not improve, XRP could remain constrained within a range, with support at $1.30 and resistance at $1.40.
XRP spot Exchange-Traded Funds (ETFs) remain on the back foot, as risk appetite appears to deteriorate further. Despite Bitcoin and Ethereum ETFs posting inflows on Thursday, US-listed XRP ETFs experienced outflows of roughly $661,000. Cumulative inflows currently stand at $1.21 billion, with net assets under management averaging $955 million.
Technical outlook: XRP holds steady amid range consolidation
XRP trades at $1.34, maintaining a bearish near-term bias as price holds decisively beneath major moving averages. The 50-day Exponential Moving Average (EMA) at $1.42, the 100-period EMA at $1.57, and the 200-period EMA at $1.83 all sit overhead, suggesting the broader trend remains capped despite a mildly positive Moving Average Convergence Divergence (MACD) reading on the daily chart and a Relative Strength Index (RSI) hovering around a neutral 45. Together, these indicators suggest consolidation rather than a sustained recovery.
On the topside, XRP's initial resistance is at $1.40, where any rebound is likely to run into early supply. A break above this hurdle would expose the 50-day EMA near $1.42, followed by the 100-day EMA at $1.57. On the downside, the lack of clearly defined indicator-based support on the chart leaves XRP vulnerable to further downside, with traders likely to look to recent swing lows at $1.30 a for potential basing signs rather than relying on established technical floors.
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
