Ripple (XRP) is still under pressure, trading below $1.10 as of Wednesday. The remittance token has dropped for four consecutive days, largely due to geopolitical tensions and a decline in risk appetite among investors.
XRP Faces Pressure from Outflows and Diminished On-Chain Activity
Activity in XRP spot exchange-traded funds (ETFs) was low on Tuesday and Monday, showing no inflows, according to data from SoSoValue. This lack of activity hints at a decrease in demand rather than a total loss of faith in digital assets. However, the importance of capital inflows remains crucial for alleviating selling pressure and helping with a potential recovery.
In total, there have been cumulative inflows of $1.49 billion, with net assets under management hitting $1.02 billion, which might indicate long-term investor confidence in XRP.
On-chain activity has also weakened. As per Santiment data, there were only 14,500 active addresses on Wednesday, a sharp drop from about 31,000 the previous day, highlighting a trend as network usage on the XRP Ledger peaked at 43,000 on June 30. Continuous low activity could further impact demand and restrict any upswing for XRP.
Interest from retail investors mirrors this trend, with futures open interest (OI) steady at 213 billion XRP on Wednesday, just slightly up from 2.12 billion XRP the day before. However, CoinGlass data reveals a slow decline from 2.38 billion XRP on June 23, which could indicate weakening investor appetite.
Price Analysis: XRP Looks for Support Around $1.05
XRP is trading at $1.08, continuing its correction below critical exponential moving averages. The 50-day EMA sits at $1.18, along with the 100-day EMA at $1.28 and the 200-day EMA at $1.49, all indicating a bearish short-term outlook while the price remains beneath this resistance zone.
The Moving Average Convergence Divergence (MACD) indicator shows positive momentum, though it hasn’t yet challenged the prevailing overhead structure on the daily chart. Concurrently, the Relative Strength Index (RSI) around 42 confirms a stronger trend rather than signaling an immediate recovery.
If XRP can break through the first resistance near the 50-day EMA at $1.18, it could face another hurdle at the 100-day EMA around $1.28, before the broader bearish framework defined by the 200-day EMA at $1.49 comes into play. On the downside, significant support appears close to the parabolic SAR level at $1.02; falling below this could reignite selling pressure, whereas holding above could allow for further exploration by buyers against the clustered EMA resistance.
