XRP tests rebound strength supported by steady ETF inflows

Ripple (XRP) pares losses and trades around $1.05 at the time of writing on Monday. The cross-border remittance token is attempting a recovery after last week’s sell-off, which intensified as the United States (US) and Iran exchanged fire.

Steady gains above $1.05 would affirm a bullish turnaround, given that Bitcoin (BTC) and Ethereum (ETH) are also edging higher.

XRP attracts modest capital inflows

XRP spot Exchange-Traded Funds (ETFs) posted inflows on several days last week. According to SoSoValue data, US-listed spot ETF inflows more than doubled totalling to $23 million, up from nearly $11 million the previous week.

Cumulative inflows currently stand at $1.47 billion, up from the $1.45 billion recorded the week before, while assets under management dropped to $934 million from $995 million.

Steady institutional interest is required to offset a significantly suppressed retail market. CoinGlass data show that perpetual futures Open Interest (OI) has remained relatively stable at $2.36 billion, down from $2.69 billion on June 1. Compared to the record $10.94 billion in July, the current OI indicates that risk-averse sentiment dominates in the retail market. The return of retailers would be key for the resumption of the uptrend.

Price analysis: XRP holds key support amid a broader bearish trend

XRP trades at $1.05, keeping a clear bearish near-term tone as price holds well beneath the key Exponential Moving Averages (EMAs), with the 50-day EMA at $1.21, the 100-day EMA at $1.31 and the 200-day EMA at $1.53 all acting as overhead resistance.

The pair is also capped below the Bollinger Bands' middle boundary at $1.12, while the lower band near $1.01 offers the nearest technical floor.

Meanwhile, the Moving Average Convergence Divergence (MACD) histogram remains marginally negative and flat on the daily chart, while the Relative Strength Index (RSI) which sits at 33 sits, suggests subdued downside momentum.

Initial resistance is seen at the Bollinger middle band around $1.12, ahead of a tighter cluster in the $1.23-$1.24 region where the Bollinger upper band aligns with the downward trendline’s break price. A daily close above this zone would be needed to ease the broader bearish pressure and target the 50-day EMA at $1.21 and. Further up, the 100-day EMA at $1.31 and the 200-day EMA at $1.53 would keep XRP constrained.

Looking down, immediate support is seen at the Bollinger lower band near $1.01. A decisive move below this level would expose fresh weakness, opening the door to a deeper retracement while keeping the overall structure firmly biased to the downside.

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