XRP holds 50-day EMA as muted retail demand caps recovery
- XRP finds support at the 50-day EMA, but a weak technical structure and muted retail interest cap upside potential.
- XRP digital investment products received $25 million in inflows last week after one week of outflows.
- Momentum indicators signal persistent bearish sentiment, as the RSI trends downward toward the critical 50 midline.
Ripple (XRP) is trading under increasing sell-side pressure as of writing on Monday. A near-term support at $1.41 suggests that dip-buying remains steady despite overhanging resistance at $1.53 and $1.78.
Risk appetite has continued to improve amid renewed optimism for the United States (US)-Iran peace. Despite the US President Donald Trump canceling the peace talks scheduled for last Sunday in Pakistan, Iran has reportedly sent a new proposal to the White House.
The proposal seeks to delay the topic of Iran’s nuclear program while focusing on objectives such as opening the Strait of Hormuz and ending the war. It remains unclear whether the White House will act on the proposal, as Trump has insisted that the US has the upper hand in the negotiations.
Broader market sentiment continues to improve with the crypto Fear & Greed Index holding at 47 in the fear territory on Monday, up from 33 the previous day. The index held in the extreme fear territory last month, underscoring the gradual but steady turnaround in investor risk appetite.
XRP recovery outlook lags on renewed institutional demand
Interest in XRP digital investment products recorded $25 million in inflows last week, bringing total assets under management to nearly $2.58 billion. The influx follows outflows of $56.2 million in the previous week and underscores an improving appetite for risk assets.
“The market now turns to the FOMC decision on 28–29 April, which is likely contributing to caution at the margin,” a CoinShares report states.
The Federal Reserve (Fed) is expected to leave interest rates unchanged in the 3.50%–$3.75% range on Wednesday. Of importance would be Fed Chair Jerome Powell’s new conference after the meeting, where investors will seek clues on the central bank’s policy direction, especially with the US-Iran conflict still pressuring global markets.
Meanwhile, retail demand for XRP perpetual futures contracts remains subdued, with Open Interest (OI) averaging $2.55 billion on Monday. Although the OI marks a slight increase from $2.50 billion the previous day, it pales in comparison to the record $10.94 billion in July. In other words, investors lack conviction in XRP’s ability to sustain an uptrend.
Technical outlook: XRP tests key support
XRP is holding just above the 50-day Exponential Moving Average (EMA) near $1.42 while remaining capped beneath the descending trendline break level at $1.43 and, more importantly, the 100-day and 200-day EMAs at $1.53 and $1.78. This configuration keeps the broader tone capped despite a still mildly constructive backdrop, as the RSI holds near a neutral 52 on the daily chart. Moreover, the MACD histogram stays marginally positive on the same chart but has been losing momentum in recent sessions.
On the downside, immediate support is aligned with the 50-day EMA at $1.42. A daily close back below this pivot would expose the SuperTrend indicator line as the next notable floor near $1.31. On the topside, initial resistance is seen at the descending trendline break area around $1.43, and only a sustained move above that barrier would open the way toward the 100-day EMA at $1.53.
(The technical analysis of this story was written with the help of an AI tool.)
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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
