XRP weakens as slowing ETF inflows, soft derivatives demand limit recovery
- XRP hovers around the day’s open at $1.43 as overhead pressure grows within a broader downtrend.
- Soft inflows into XRP spot ETFs and cooling retail demand could limit the token's recovery potential.
- The downward-sloping 100-day and 200-day EMAs define XRP’s weak technical structure.
Ripple (XRP) exhibits technical weakness, trading around $1.43 at the time of writing on Friday. Prices across the crypto market appear pressured amid buyer exhaustion following the early-week gains driven by the extension of the US-Iran ceasefire on Tuesday.
The remittance token’s rebound stalled at the weekly high of $1.46, coinciding with emerging risk-off sentiment in the derivatives market and softening interest in related investment products. Meanwhile, demand around $1.40 could offer fresh entry opportunities for investors and help prevent an extended correction.
XRP trades sideways as retail and institutional activity cools
Retail demand for XRP derivatives remains on the back foot, with the perpetual OI averaging $2.57 billion on Friday. The OI has remained relatively steady at this level since Monday, after fading from $2.80 billion, its monthly peak. On that account, sustaining recovery in XRP could be an uphill battle, leaving the remittance token largely susceptible to sell-side pressure.
At the same time, interest in XRP spot Exchange-Traded Funds (ETFs) slowed this week, with roughly $9.30 million in inflows recorded through Thursday, compared with $55.39 million the previous week.
Meanwhile, inflows totaled $3.89 million on Thursday, rising from $2.42 million the previous day. Cumulative inflows average $1.28 billion and total net assets $1.08 billion, according to SoSoValue data. Steady institutional demand is required to help shape sentiment and sustain XRP’s recovery.
Technical outlook: XRP upside limited as key support holds
XRP trades at $1.43, upholding a mildly constructive tone as it trades above the 50-day EMA at $1.41 and the Bollinger Bands’ 20-day Simple Moving Average near $1.39, indicating underlying demand on dips. Still, the broader trend remains capped while price stays below the 100-day Exponential Moving Average (EMA) at $1.53 and the 200-day EMA at $1.78.
Momentum signals are supportive with the Moving Average Convergence Divergence (MACD) histogram holding in positive territory on the daily chart and the Relative Strength Index (RSI) near 56. Notably, the elevated Money Flow Index (MFI) around 74 suggests strong buying pressure but is edging toward overbought territory.
On the topside, initial resistance is aligned with the Bollinger upper band at $1.48, ahead of a more significant barrier at the 100-day EMA at $1.53. A daily close above these levels would be needed to open the way toward the 200-day EMA at $1.78. On the downside, immediate support lies at the 50-day EMA at $1.41, followed by the Bollinger midline around $1.39. A break below this zone would expose the lower band at $1.30 and undermine the current constructive consolidation phase.
(The technical analysis of this story was written with the help of an AI tool.)
Crypto ETF FAQs
An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.
Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.
Yes. The SEC approved in January 2024 the listing and trading of several Bitcoin spot Exchange-Traded Funds, opening the door to institutional capital and mainstream investors to trade the main crypto currency. The decision was hailed by the industry as a game changer.
The main advantage of crypto ETFs is the possibility of gaining exposure to a cryptocurrency without ownership, reducing the risk and cost of holding the asset. Other pros are a lower learning curve and higher security for investors since ETFs take charge of securing the underlying asset holdings. As for the main drawbacks, the main one is that as an investor you can’t have direct ownership of the asset, or, as they say in crypto, “not your keys, not your coins.” Other disadvantages are higher costs associated with holding crypto since ETFs charge fees for active management. Finally, even though investing in ETFs reduces the risk of holding an asset, price swings in the underlying cryptocurrency are likely to be reflected in the investment vehicle too.
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
