XRP risks further decline weighed down by low retail interest

Ripple (XRP) is trading around $1.88 at the time of writing on Tuesday, correcting from the previous day’s high of $1.95. The cross-border remittance token remains under immense pressure amid a weak technical structure.

Despite steady institutional interest, retail demand continues to lag, suggesting a lack of confidence in XRP’s ability to sustain an uptrend.

XRP extends ETF inflows as derivatives momentum fades

Retail interest in XRP has failed to gain traction, aligning with a persistent risk-off sentiment across the crypto market. The futures Open Interest (OI) hovers at $3.29 billion on Tuesday, slightly above the yearly low of $3.26 billion, recorded on Monday.

OI tracks the notional value of outstanding futures contracts. As it declines, it signals a lack of investor conviction in XRP, which weakens price momentum as traders close positions rather than open new ones.

Meanwhile, XRP continues to attract sustained interest from Exchange Traded Funds (ETFs), with a four-day inflow streak. Data by SoSoValue shows that XRP spot ETFs drew nearly $8 million in inflows on Monday.

The cumulative total inflow now stands at $1.24 billion, and net assets at $1.36 billion. Bitwise’s XRP ETF outpaced the rest of the products with an inflow of about $5.3 million.

Technical outlook: XRP trades under persistent pressure

XRP failed to extend its recovery above $2.00 on Monday, stalling at $1.95 before trimming part of the gains as headwinds intensify. The Relative Strength Index (RSI) is at 42 on the daily chart, suggesting bearish momentum is building. A further decline in the RSI toward the oversold region would accelerate the downtrend, with XRP dropping to Sunday's low of $1.81. Below this demand zone, the April low at $1.62 marks the next key support.

The Moving Average Convergence Divergence (MACD) line remains below the signal line on the same chart, confirming XRP’s short-term bearish outlook. Histogram bars expanding below the zero line could encourage investors to close existing positions until a clear recovery path is established.

Still, XRP has a chance to steady its recovery with a decisive move above the $1.90 immediate resistance. Despite that, investors should temper their expectations until XRP rises above the supply cluster between the 50-day EMA at $2.02 and the 200-day EMA at $2.38.