XRP holds above $1.00 support amid a broader bearish trend
- XRP buyers defend the $1.00 support despite limited upside.
- Muted ETF demand offsets steady perpetual futures Open Interest, which averages 2.66 billion XRP.
- XRP clings to a weak technical structure, defined by downward-sloping major moving averages.
Ripple (XRP) maintains a bearish outlook while trading above its immediate $1.00 support on Thursday. The remittance token has sustained a steady decline from the July high of $1.18, underpinning reduced demand and the lack of catalysts to sustain recovery.
Holding above the $1.00 demand area remains critical to XRP’s recovery. Otherwise, a sell-off could ensue amid buyer exhaustion, driving losses far below the $1.00 region.
XRP consolidates amid muted ETF activity
US-listed XRP spot Exchange-Traded Funds (ETFs) remain lackluster amid persistently muted trading activity from last Friday through Wednesday. The absence of institutional engagement highlights the entrenched bearish sentiment weighing on the broader crypto market and tempers expectations for a near-term recovery.
Despite this, cumulative inflows hold steady at $1.51 billion and assets under management total $939 million, signaling continued long-term confidence in XRP.
Retail appetite holds steady in the derivatives market, with perpetual futures Open Interest (OI) averaging 2.66 billion XRP on Thursday, down only marginally from 2.67 billion XRP the day before. Despite retail gradually increasing from 2.12 billion XRP on August 12, it has not been enough to offset the sell-off in the broader XRP market. Still, sustained demand in the derivatives market suggests retail investors uphold XRP’s positive long-term prospects.
Technical analysis: XRP holds key support
XRP trades above $1.00, maintaining a bearish near-term bias as price remains below the short, medium, and long-term Exponential Moving Averages (EMAs) and the SuperTrend line. Momentum indicators back this stance, with the Moving Average Convergence Divergence (MACD) indicator below zero and its signal line on the daily chart showing a negative, slightly contracting histogram, and the Relative Strength Index (RSI) at 36, hovering near oversold territory and hinting that sellers still dominate.
Immediate resistance is clustered in the $1.09 area, where the 50-day EMA at $1.09 aligns closely with the SuperTrend barrier at $1.09. A daily close above this zone would be needed to ease the current bearish pressure. Further up, the 100-day EMA at $1.17 marks the next hurdle before the more decisive structural ceiling at the 200-day EMA near $1.36, which defines the upper boundary of the medium-term trend and would only come into play if bulls reclaim and sustain levels well above the $1.10 handle.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
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.
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
