Ripple Price Forecast: XRP bears eye $1.00 as institutional, retail demand fades
- XRP slides toward the $1.00 level, extending a three-day sell-off.
- US-listed spot ETFs’ cumulative inflows hold steady at $1.51 billion amid muted activity on Tuesday.
- The token faces subdued retail demand despite a marginal increase in futures Open Interest to 2.14 billion XRP.
Ripple (XRP) edges lower toward the short-term $1.05 psychological support level at the time of writing on Wednesday. This marks three consecutive days of losses, undermining investor interest and the broader optimism for a potential deal between the United States (US) and Iran to reopen the Strait of Hormuz.
XRP demand softens as headwinds escalate
Institutional interest in XRP Exchange-Traded Funds (ETFs) remains on the back foot, given muted activity on Tuesday and mild inflows of $1.15 million on Monday. According to SoSoValue, cumulative inflows are holding steady at $1.51 billion and total assets under management at $1.00 billion, indicating that investors have retained a positive long-term outlook in the token.
Retail demand has improved only slightly to 2.14 XRP on Wednesday, from 2.12XRP the previous day, according to CoinGlass’s data on perpetual futures Open Interest (OI). Despite the increase, the chart below highlights a general downtrend from 2.37 billion XRP, which marked the peak in July.
In other news, Ripple announced a strategic investment in ZILO, a platform that specializes in transfer technology solutions for asset managers, and Liquid, a tokenization and trading company specializing in digital ownership and asset liquidity.
Nigel Khakoo, Senior Vice President, Trading and Markets at Ripple, said in a press release on Monday that “ZILO and Licuido provide core capabilities that are essential to further scaling this shift: regulated digital transfer agency infrastructure and liquidity for issuance and collateral mobility.”
Technical analysis: XRP bears tighten grip amid persistent declines
XRP remains under clear downside pressure, holding below the 50-day, 100-day and 200-day Exponential Moving Averages (EMAs), which all sit well overhead and reinforce a bearish near-term bias. The downtrend resistance trendline, with a break level around $1.08, also stays above spot, suggesting that even modest rebounds would face selling interest.
Momentum indicators align with this tone, as the Relative Strength Index (RSI) slips in the low-40s on the daily chart and the Moving Average Convergence Divergence (MACD) histogram is marginally negative, hinting that bearish momentum is present but not yet exhausted.
Initial resistance lies at the downtrend resistance break area near $1.08, where failure to reclaim would keep the latest slide intact. Above that zone, the 50-day EMA around $1.12 is the next hurdle, followed by the 100-day EMA near $1.20, while the 200-day EMA up at $1.40 defines a much higher structural cap that would need to be overcome to meaningfully challenge the broader bearish structure. On the flip side, the path of least resistance remains to the downside with the area at $1.05 holding as the nearest support, followed by the critical $1.00 level.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Open Interest, funding rate FAQs
Higher Open Interest is associated with higher liquidity and new capital inflow to the market. This is considered the equivalent of increase in efficiency and the ongoing trend continues. When Open Interest decreases, it is considered a sign of liquidation in the market, investors are leaving and the overall demand for an asset is on a decline, fueling a bearish sentiment among investors.
Funding fees bridge the difference between spot prices and prices of futures contracts of an asset by increasing liquidation risks faced by traders. A consistently high and positive funding rate implies there is a bullish sentiment among market participants and there is an expectation of a price hike. A consistently negative funding rate for an asset implies a bearish sentiment, indicating that traders expect the cryptocurrency’s price to fall and a bearish trend reversal is likely to occur.
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