XRP extends pullback as on-chain activity and ETF flows deteriorate
- XRP extends its pullback near the $1.30 support level as crypto prices broadly correct on Thursday.
- XRP’s number of addresses plunged to nearly 18,000 on Wednesday after spiking to above 31,000 on Tuesday.
- XRP ETFs face capital flight as outflows total $1.32 million on Wednesday, reflecting sticky risk-averse sentiment.
Ripple (XRP) is trading near $1.30 at the time of writing on Thursday, as Iran's war-driven sentiment weighs on risk assets. XRP’s attempt to regain momentum this week stalled near $1.37 on Monday, reflecting risk-off sentiment amid capital exiting digital investment products.
XRP wobbles on fading on-chain activity, institutional interest
The number of active addresses transacting on the XRP Ledger (XRPL) dropped by nearly 42% to around 18,000 on Wednesday, from nearly 32,000 on Tuesday, suggesting volatile activity amid the war in the Middle East, which has continued to pressure risk assets.
The CryptoQuant chart below suggests that demand for XRP has remained subdued since early February, apart from a few isolated spikes in active addresses. Without steady user engagement, buying pressure narrows, weakening momentum.
Interest in XRP Exchange-Traded Funds (ETFs) has deteriorated further, as evidenced by mild outflows of $1.32 million on Wednesday following muted activity on Tuesday. XRP ETFs also recorded outflows of roughly $2.3 million on Monday, undermining risk appetite.
If outflows persist, they would suggest that sentiment is deteriorating, limiting XRP’s potential recovery.
Technical outlook: XRP risks extending sell-off below $1.30
XRP edges lower near $1.30 amid a dominant near-term bearish bias, as the price extends its slide below the descending resistance trendline. The remittance token is holding below the 50-day Exponential Moving Average (EMA) that sits near $1.44. At the same time, the 100-day and 200-day EMAs near $1.61 and $1.89 remain well above spot, reinforcing a broader downside context.
The Moving Average Convergence Divergence (MACD) indicator is below its signal line on the daily chart and has slipped into negative territory, with mildly expanding bearish histogram bars, suggesting selling pressure persists. Moreover, the Relative Strength Index (RSI) near 38 remains below the 50 mark on the same chart, suggesting weakening momentum rather than oversold conditions.
XRP's immediate support lies at the recent low around $1.30, and a decisive break below this area would expose the next downside levels at $1.27 and then $1.25. On the topside, initial resistance aligns with the prior breakdown zone near $1.36, where recent candles stalled, followed by the $1.41–$1.42 band. A recovery above $1.42 would be needed to ease the current bearish pressure and open a move back toward the 50-day EMA around 1.44, where a denser resistance zone is expected to cap first attempts higher.
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.
(The technical analysis of this story was written with the help of an AI tool.)
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
