XRP signals mild rebound amid cooling retail and institutional interest

• XRP edges higher for the second consecutive day, holding $1.35 as immediate support on Wednesday.
• XRP retail demand cools as futures Open Interest drops to $2.45 billion, likely limiting recovery potential.
• XRP ETF activity remained muted on Tuesday after outflows of $2.3 million on Monday, reflecting sticky risk-off sentiment.

Ripple (XRP) is trading above $1.35 at the time of writing on Wednesday, rising from its daily open of $1.34. Despite the remittance token securing support above the $1.35 level after edging higher for the second consecutive day, overall retail and institutional demand remains subdued.

Meanwhile, attention remains on whether XRP can sustain its rebound amid evolving sentiment and liquidity conditions.

XRP institutional and retail interest fade

The United States (US) and Israel’s war with Iran, which is now in its second month, has continued to weigh on crypto assets as recovery attempts are quickly absorbed, leading to frequent pullbacks.

Sentiment, as reflected in the XRP spot Exchange-Traded Funds (ETFs), remains weak following muted activity on Tuesday. As reported, US-listed ETFs experienced outflows totaling $2.3 million on Monday.

Cumulative inflows have steadied at $1.21 billion, while net assets under management have dropped to around $944 million, from the record $1.65 billion on January 1.

Retail demand has similarly weakened, as evidenced by futures Open Interest (OI) in the derivatives market, falling to $2.45 billion on Wednesday from $2.54 billion the previous day.

In contrast, OI peaked at a record $10.94 billion in July, coinciding with the price hitting an all-time high of $3.66. This sharp decline has dampened retail investor interest in the token and signals their reluctance to take on additional risk.

Technical outlook: XRP edges higher as support holds

XRP is trading slightly above $1.35 as its near-term bias stays neutral-to-bearish. The price continues to oscillate beneath the broken descending resistance line, with the latest rebound attempts failing to secure follow-through above the $1.43 area. The cluster of 50-day, 100-day and 200-day Exponential Moving Averages (EMAs) well above spot underscores a dominant downside backdrop.

Moreover, the Moving Average Convergence Divergence (MACD) indicator holds below the signal on the daily chart, suggesting persistent negative momentum. The Relative Strength Index around 43 remains below the midline on the same chart, reinforcing a downside tilt but not yet indicating oversold conditions.

XRP's initial resistance is now seen near $1.37, ahead of the $1.40–$1.43 band that capped recent bounces and aligns with the broken trendline region. A daily close above $1.43 would be needed to ease bearish pressure and open the way toward the $1.45–$1.52 zone. On the downside, immediate support emerges at $1.33, followed by last week’s low near $1.30. A break here would expose the $1.25 demand handle. As long as price holds below $1.43, rallies would be vulnerable to renewed selling into these resistance levels.

(The technical analysis of this story was written with the help of an AI tool.)