XRP bears eye break of fragile $1.00 support
- XRP holds near the $1.00 support amid limited upside and a weak technical structure.
- Binance exchange reserves rise above 2.61 billion XRP, pointing to potentially higher selling pressure.
- XRP’s outlook remains bearish amid muted spot ETF inflows.
Ripple (XRP) is trading within a broadly constrained technical structure, with support at $1.00 and key moving averages limiting its recovery potential. In August, the remittance token declined by approximately 6.5%, extending its total pullback to around 14% from July's $1.18 peak. A drop below the key short-term support would further undermine recovery prospects.
XRP exchange reserves rise jeopardizing recovery
Binance exchange reserves have increased slightly above 2.61 billion XRP, valued at roughly $2.68 billion as of Tuesday. This represents a slight increase from approximately 2.607 billion XRP over the last seven days, pointing to higher available sell-side liquidity, which can mean a mild headwind to upside momentum, especially if the recovery is not supported by other demand signals.
Rising exchange reserves amid price weakness generally signal distribution in the face of near-term selling pressure. As exchange reserves grow, price action around the critical $1.00 support will be pivotal in determining the next directional move.
US-listed XRP spot Exchange-Traded Funds (ETFs) continue to underperform, with muted trading activity persisting through Friday, Monday and Tuesday. The absence of institutional participation underscores prevailing bearish sentiment across the crypto sector, diminishing prospects for a sustained recovery. However, cumulative inflows remain stable at $1.51 billion, while assets under management stand at $943 million, underpinning investors’ long-term positive outlook in the underlying asset.
Technical analysis: XRP tests $1.00 lifeline support
XRP remains under clear bearish pressure as price is capped beneath the 50-day Exponential Moving Average (EMA) at $1.09, the 100-day EMA at $1.18 and the 200-day EMA at $1.37, keeping the broader trend downside-biased. The spot price also sits below the Bollinger Bands middle boundary at $1.06 and the upper layer near $1.12, reinforcing the idea of a subdued recovery attempt.
At the same time, the Moving Average Convergence Divergence (MACD) indicator prints the histogram in negative territory, and the Relative Strength Index (RSI) hovers around 38, hinting at persistent bearish momentum rather than an oversold capitulation.
Initial resistance emerges at the broken downward trendline area around $1.04, followed by the Bollinger middle boundary at $1.06 and the 50-day EMA at $1.09, which together form a dense barrier zone ahead of the upper Bollinger band at $1.12. Above these, the 100-day EMA at $1.18 and the 200-day EMA near $1.37 remain key levels that would need to be reclaimed to neutralize the broader downtrend.
On the downside, immediate support is provided by the Bollinger lower band at $1.00, and a clear break below this level would expose the pair to further losses and extend the current bearish phase.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
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
