XRP holds fragile support as bearish bias persists
- XRP remains largely in bearish hands despite reclaiming the immediate $1.10 support.
- Institutional investors pull back amid muted XRP spot ETF activity and a marginal increase in futures Open Interest.
- XRP trades within a dominant short-term bearish outlook largely defined by declining major moving averages.
Ripple (XRP) maintains narrow range trading on Monday, with support at $1.10. The token's upside remains largely constrained, as major moving averages trend downward, aligning with low demand in both the institutional and retail markets.
XRP cooling demand limits momentum
Retail interest in XRP derivatives remains relatively stable, given perpetual futures Open Interest (OI) stands at 2.21 billion XRP on Monday, up from 2.19 billion XRP the previous day. According to CoinGlass, OI has stabilized following the drop to 2.37 billion XRP on July 20, indicating that investors lack the conviction to remain exposed to risk. Besides, an attempt to sustain a breakout lost momentum around $1.16 last Tuesday.
Appetite for XRP spot Exchange-Traded Funds (ETFs) continued to deteriorate, considering activity remained muted on Wednesday, Thursday and Friday. According to SoSoValue data, cumulative inflows average $1.49 billion, with net assets under management at $1.01 billion, suggesting that investors have a longer-term interest in XRP, which may help stabilize the price amid the current technical weight.
Geopolitical tensions in the Middle East eased over the weekend as United States (US) President Donald Trump paused military action against Iran to give space for dialogue. Iran also responded by suspending strikes on US military bases in the region. Oil prices have seen a sharp decline on Monday, reflecting easing tensions between the two countries as they seek a diplomatic solution toward a lasting peace agreement.
Price analysis: XRP extends consolidation
XRP trades at $1.11, keeping a bearish near-term bias as it holds well below the 50-day, 100-day and 200-day Exponential Moving Averages (EMAs). The nearest confluence of resistance sits just overhead around $1.14, where the 50-day EMA aligns with the 78.6% Fibonacci retracement level, suggesting that rebounds are likely to face supply quickly.
The Relative Strength Index (RSI) at 49 is effectively neutral on the daily chart, while the Moving Average Convergence Divergence (MACD) line remains marginally above zero, hinting that downside pressure is present but not yet accompanied by strong momentum.
The first notable support emerges at the 100% Fibonacci retracement level near $1.01, where buyers may attempt to build a base if selling resumes. If price fails to hold this floor, the broader Fibonacci structure would leave XRP exposed to a deeper retracement toward prior cycle levels, reinforcing the view that the pair must reclaim the $1.14 cluster to ease immediate downside risks and open the way toward the 100-day EMA at $1.22 and the 61.8% Fibonacci retracement at $1.24.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Open Interest, funding rate FAQs
Higher Open Interest is associated with higher liquidity and new capital inflow to the market. This is considered the equivalent of increase in efficiency and the ongoing trend continues. When Open Interest decreases, it is considered a sign of liquidation in the market, investors are leaving and the overall demand for an asset is on a decline, fueling a bearish sentiment among investors.
Funding fees bridge the difference between spot prices and prices of futures contracts of an asset by increasing liquidation risks faced by traders. A consistently high and positive funding rate implies there is a bullish sentiment among market participants and there is an expectation of a price hike. A consistently negative funding rate for an asset implies a bearish sentiment, indicating that traders expect the cryptocurrency’s price to fall and a bearish trend reversal is likely to occur.
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
