XRP upside stays limited despite steady inflows
- XRP trades sideways above $1.00, with upside remaining capped.
- Retail demand steadies, with futures Open Interest climbing to 2.41 billion XRP.
- A persistent MACD sell signal and declining moving averages point to a weak XRP technical structure.
Ripple (XRP) holds firmly above the $1.00 near-term support at the time of writing on Monday. The remittance token’s upside is capped under key descending moving averages, undermining the broader technical outlook.
XRP attracts modest capital inflows
Retail interest in derivatives continues to gain momentum, as perpetual futures Open Interest (OI) climbs to an average of 2.41 billion XRP on Monday from 2.39 billion XRP the previous day.
Broadening the view, OI was at 2.12 billion XRP on August 5, a 12% rise. If this momentum in retail participation persists, XRP could defend the key $1.00 support, raising the probability of a sustained recovery.
US-listed XRP spot Exchange-Traded Funds (ETFs) attracted $1.01 million in inflows last week, further reinforcing the bullish momentum observed in recent weeks. Total cumulative inflows have reached $1.51 billion, while assets under management now stand at $953 million.
Technical analysis: XRP remains pressed toward $1.00 support
XRP trades at $1.03, extending a bearish near-term bias as price holds beneath the cluster of Exponential Moving Averages (EMAs) and the prevailing downward resistance trendline. The 50-day EMA at $1.10, the 100-day EMA at $1.18 and the 200-day EMA at $1.37 all sit above spot, suggesting the broader trend remains under pressure, while the downward resistance line, now projected around $1.05, continues to cap recovery attempts.
Momentum indicators reinforce this weak tone, with the Relative Strength Index (RSI) hovering near 40 and the Moving Average Convergence Divergence (MACD) in negative territory, hinting that rallies are still likely to be sold.
On the topside, initial resistance lies at the downward resistance trend line near $1.05, where any bounce would first be challenged. A break above this barrier would expose the 50-day EMA around $1.10, followed by the 100-day EMA at $1.18, while the 200-day EMA near $1.37 stands as a more distant cap within the broader downtrend. The pair remains vulnerable to further downside as long as it trades below these stacked resistances.
(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
