Ripple Price Forecast: XRP sell-off accelerates as bears target $1.00 support
- XRP decline deepens toward the critical $1.00 level as risk-off sentiment persists.
- US-listed spot ETFs record weekly inflows but fail to offset derivative pressure as Open Interest drops to 2.23 billion XRP.
- XRP trades within a weak technical structure defined by falling momentum indicators and overhead EMAs.
Ripple (XRP) is trading at $1.06 on Monday, maintaining its position within a broader bearish trend. The token’s technical outlook continues to deteriorate, pressured by declining retail participation.
Appetite for risk assets remains lethargic, as reflected in the Fear & Greed Index, which is embedded in the Fear territory at 28. If sentiment continues to deteriorate, XRP could struggle to sustain recovery, prompting investor selling and risking an extended sell-off below the critical $1.00 level.
XRP ETF demand strengthens as retail participation cools
XRP spot Exchange-Traded Funds (ETFs) attracted inflows totaling $14.86 million last week through Friday, rising from $8.15 million the previous week. As a result, cumulative inflows climbed to $1.51 billion while net assets declined only marginally to $989 million from $997 million over the same period. Should institutions keep increasing risk exposure, XRP could regain momentum for a steady recovery in the short-term to medium-term.
Retail demand is on the back foot, as evidenced by perpetual futures Open Interest (OI) fading to 2.23 billion XRP on Monday, from 2.26 billion XRP the day before. CoinGlass data shows a broader sell-off from 2.37 billion XRP on July 37, undermining investor appetite.
On the other hand, the attack on Coldcard hardware wallets is weighing on the crypto market after holders collectively lost roughly 1,367 BTC, about $89 million. The attackers leveraged a firmware flaw in the cold storage wallets dormant since 2021.
“The week’s genuine shock came from custody rather than price. A firmware flaw in Coldcard hardware wallets, dormant since 2021, was exploited to drain roughly 1,367 BTC, about $89 million, from thousands of self-custodied addresses, with researchers warning that every vulnerable single-signature wallet remains at risk,” Yusuf Fakhro, Partner at ARP Digital, said in a commentary.
Technical analysis: XRP sustains bearish out as headwinds intensify
XRP trades at $1.06, extending the correction from July highs around $1.18. The broader structure remains capped as price holds below the 50, 100 and 200 Exponential Moving Averages (EMAs) clustered between $1.08 and $1.10 on the 4-hour chart.
Still, the Moving Average Convergence Divergence (MACD) histogram is marginally positive and the Relative Strength Index (RSI) hovers near 45, hinting at mildly constructive momentum that is not yet strong enough to challenge the overhead EMA barrier.
Initial resistance lies at the 50 EMA at $1.08, followed by the 100 EMA at $1.09, while the 200 EMA near $1.10 marks a more significant cap for any recovery attempt. On the downside, immediate support lies at the reclaimed trendline region around $1.06, with the SuperTrend indicator providing further demand near $1.05. A break below this zone would likely expose XRP to deeper corrective pressure in the near term.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Crypto ETF FAQs
An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.
Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.
Yes. The SEC approved in January 2024 the listing and trading of several Bitcoin spot Exchange-Traded Funds, opening the door to institutional capital and mainstream investors to trade the main crypto currency. The decision was hailed by the industry as a game changer.
The main advantage of crypto ETFs is the possibility of gaining exposure to a cryptocurrency without ownership, reducing the risk and cost of holding the asset. Other pros are a lower learning curve and higher security for investors since ETFs take charge of securing the underlying asset holdings. As for the main drawbacks, the main one is that as an investor you can’t have direct ownership of the asset, or, as they say in crypto, “not your keys, not your coins.” Other disadvantages are higher costs associated with holding crypto since ETFs charge fees for active management. Finally, even though investing in ETFs reduces the risk of holding an asset, price swings in the underlying cryptocurrency are likely to be reflected in the investment vehicle too.
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