On Thursday, Ripple (XRP) is trading slightly above its crucial $1.00 support level, although it still appears to have a bearish outlook. The cryptocurrency has been gradually losing ground since it peaked at $1.18 in July, which indicates a decline in demand and a lack of drivers for a recovery.
It’s essential for XRP to stay above the $1.00 support to aid its recovery. If it can’t, we might see a continuation of selling pressure, which could push prices down below that key level.
XRP Stabilizes Amid Slower ETF Activity
The XRP spot exchange-traded fund (ETF) listed in the U.S. has seen minimal activity, especially from last Friday to Wednesday, signaling low engagement from institutional investors. This highlights the prevailing bearish sentiment across the crypto market, reducing the likelihood of an immediate rebound.
Nonetheless, overall inflows have remained consistent at $1.51 billion, with total assets under management reported at $939 million, reflecting a sustained long-term confidence in XRP.
Retail interest appears to be holding up in the derivatives market. On Thursday, open interest (OI) in perpetual futures was around 2.66 billion XRP, slightly down from the previous day’s 2.67 billion XRP. While retail prices have shown a gradualIncrease since hitting 2.12 billion XRP on August 12, it hasn’t been enough to counteract the overall downward trend in the XRP market. Still, the ongoing demand in the derivatives market may indicate that retail investors remain optimistic about XRP’s long-term prospects.
Technical Analysis: XRP Maintains Key Support
XRP is trading above the $1.00 mark but still shows a bearish trend as it remains below the short-, medium-, and long-term exponential moving averages (EMAs) and supertrend lines. Momentum indicators back this outlook, with the Moving Average Convergence Divergence (MACD) falling below zero and the signal line on the daily chart showing a negative, slightly contracting histogram. The Relative Strength Index (RSI) is hovering around 36, close to the oversold range, suggesting that sellers still have the advantage.
Immediate resistance is noted around the $1.09 level, where the 50-day EMA aligns with the supertrend barrier. A daily close above this zone would be necessary to relieve some of the bearish pressure. Further up, the 100-day EMA at $1.17 represents the next challenge, while the 200-day EMA sits near $1.36, marking the upper limit for the medium-term trend. For a more significant rebound, XRP would need to reclaim and maintain levels above the $1.10 range.
