Ripple Price Forecast: XRP slumps toward $1.00 despite network growth and ETF demand

• XRP ticks lower but holds above the psychological $1.00 on Tuesday.
• The XRP Ledger sees notable network growth, with newly created addresses spiking near 5,000, hinting at dip-buying.
• US-listed XRP ETFs extended bullish streak with inflows of $15 million on Monday but failed to lift price outlook.

Ripple (XRP) is holding above the key $1.00 psychological support level at the time of writing on Tuesday, even as the market endures a protracted downturn that began in mid-June.

The drawdown underscores the prevailing risk-off mood across the crypto space. However, XRP is seeing renewed momentum, highlighted by a sharp uptick in on-chain activity and consistent institutional inflows.

XRP network activity rises

The XRP Ledger (XRPL) is witnessing a notable surge in network activity, with daily new wallet creations approaching 5,000, a level not seen in the past three months, according to Santiment data. This uptick suggests that despite sustained price pressure near the $1.00 mark, investor engagement remains resilient, with participants capitalizing on this key psychological support.

Market sentiment is also turning increasingly positive around the $1.00 level, with bullish commentary now outnumbering bearish remarks by 3.7 to 1, underscoring the level’s appeal as a dip-buying opportunity.

“Part of this optimism comes from XRP’s familiar rebound history, ongoing ETF and institutional narratives, and the idea that larger holders have continued building exposure even during ugly price action,” Santiment analysts stated.

XRP spot Exchange-Traded Funds (ETFs), on the other hand, continue to post inflows defying the current bearish outlook in the crypto market. Inflows into US-listed ETFs steadied above $15 million on Monday, bringing cumulative deposits to $1.48 billion and net assets under management to $972 million.

The sustained uptake of XRP ETFs shows that institutions see a bullish picture and are willing to increase exposure even as prices falter near the psychological support level of $1.00.

Price analysis: XRP sustains bearish outlook

XRP trades at $1.04, keeping a clear bearish near-term tone as it sits well below the 50-day, 100-day and 200-day Exponential Moving Averages (EMAs) at $1.20, $1.31 and $1.52 respectively. The Bollinger Bands show spot trading beneath the middle band at $1.12 and relatively close to the lower band support at $1.00, hinting at persistent downside pressure.

At the same time, momentum indicators reinforce this capped structure, with the Moving Average Convergence Divergence (MACD) histogram slightly negative on the daily chart and the Relative Strength Index (RSI) hovering near 32, suggesting weak demand with a modestly oversold bias rather than a decisive reversal.

On the topside, initial resistance emerges at the Bollinger middle band near $1.12, followed by clustered EMA resistance from the 50-day at $1.12 and the upper Bollinger band around $1.24, before a more substantial barrier at the 100-day EMA at $1.31 and the broader bearish cap imposed by the 200-day EMA at $1.52.

Looking down, the immediate focus is the pivot around the current trading area near $1.04. A daily close below this level would open the way toward the Bollinger lower band support at $1.00, where buyers could attempt to stabilize price before any meaningful recovery attempt toward the overhead moving averages.

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