XRP extends sell-off as weak derivatives deepen downside risk

Ripple (XRP) holds above $1.30 at the time of writing on Tuesday, sustaining losses for three consecutive days amid war-driven weak market sentiment. The remittance token is grappling with overhead pressure amid narrowing institutional and retail demand.

This waning demand comes as XRP hovers near crucial support levels, making the token vulnerable to further losses if selling momentum intensifies.

XRP declines amid cooling institutional interest

Interest in XRP investment products has taken a hit in recent weeks, driving capital exit across Exchange-Traded Funds (ETFs) and derivatives. US-listed XRP spot ETFs registered outflows totaling roughly $2.3 million on Monday, following muted activity last Thursday and Friday.

Cumulative inflows stand at $1.21 billion, with net assets under management averaging $929 million, according to SoSoValue data. If risk appetite fails to improve and capital exit extends, recovery in XRP price could remain a pipe dream in the short to medium term.

Retail interest remains subdued, with Open Interest (OI) averaging $2.54 billion on Monday and Tuesday — reflecting the total value of outstanding futures and options contracts. In contrast, OI peaked at a record $10.94 billion in July, coinciding with the price hitting an all-time high of $3.66. This sharp decline has dampened retail investor interest in the token and signals their reluctance to take on additional risk.

Technical outlook: XRP extends weakness as $1.30 support holds

XRP is edging lower at $1.31 amid a short-term bearish trend. Daily closes remain well below the 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs), which are clustered between $1.45 and $1.88, keeping the broader trend under pressure. The Moving Average Convergence Divergence (MACD) indicator slips further below the signal line as the red histogram bars expand on the daily chart, suggesting strengthening bearish momentum.

At the same time, the Relative Strength Index (RSI) is at 37 on the same chart, staying below the 50 midline and reinforcing a downside-tilted tone rather than oversold exhaustion.

XRP's initial resistance emerges at $1.36, where recent minor rebounds stalled with a stronger cap expected at $1.40 and then $1.45, the latter aligning with the 50-day EMA. On the downside, immediate support is seen at $1.30, where the latest breakdown occurred, and intraday buyers have attempted to stabilize the price action. A decisive close below $1.30 would open the way toward $1.25 and then $1.22, exposing the broader corrective leg as long as momentum remains bearish.

(The technical analysis of this story was written with the help of an AI tool.)