Ripple's XRP is trading around $1.10 on Wednesday, following a rejection near the $1.20 resistance zone. The token continues to mirror the broader crypto market's risk-off mood, with Bitcoin hovering near $61,000 and Ethereum threatening to slip below $1,600.
The Crypto Fear & Greed Index remains deep in Extreme Fear territory at 14, a slight improvement from 10 the previous day but still reflecting low confidence in any sustained recovery. Prolonged fear conditions could continue to weigh on XRP's ability to retest the $2.00 level in the near term.
Institutional Interest Shows Signs of Life
Despite the bearish price action, institutional engagement is showing some improvement. Data from CoinGlass indicates that XRP ETFs recorded an inflow of $6.75 million on Tuesday, following a relatively quiet Monday. Cumulative inflows now stand at $1.44 billion, while net assets rose to $1.02 billion from $928 million the previous day. This suggests that institutional investors remain cautiously optimistic about XRP's long-term prospects.
Futures activity also shows moderate interest, with XRP perpetual futures open interest (OI) at $2.39 billion, up from $2.28 billion on Sunday. However, analysts note that stronger retail inflows are needed to support any sustained upward trend. For now, subdued demand continues to limit bullish momentum.
Technical Picture Remains Bearish
The XRP/USD 4-hour chart remains bearish, with the token trading below key moving averages. XRP is currently below the 50-day EMA at $1.32, the 100-day EMA at $1.41, and the 200-day EMA at $1.62. This reinforces a broader bearish structure, with downside control still dominating the market.
Momentum indicators are improving but have not yet flashed buy signals. The RSI near 50 suggests weakening bearish momentum without indicating a switch to the bullish side. The MACD histogram remains negative but is showing signs of contraction, hinting that bearish momentum may be easing—though not reversing.
If the market recovery continues, XRP could surge past the first major resistance level at $1.25, with the 50-day EMA at $1.32 a possible target. A daily candle close above these levels could pave the way for XRP to extend its rally towards the 100-day and 200-day EMAs at $1.41 and $1.62, respectively. A sustained break above these levels would be required to neutralize the bearish structure.
However, if the recovery fails, buyers will need to defend the $1.05 support level. Failure to do so could see XRP drop below the $1.00 psychological area. A breakdown below $1.00 could intensify selling pressure and open the door to a deeper correction.
XRP remains in a weak technical position, with recovery attempts repeatedly rejected at key resistance levels. Until momentum and demand improve meaningfully, rallies are likely to remain corrective within a broader bearish trend. For context, similar bearish patterns have been observed in other assets, such as PI Token struggling at $0.10 support and Bitcoin bouncing above $63K after defending $60K. Meanwhile, Ethereum tests $1,500 support amid similar selloff pressure.
This article is for informational purposes only and does not constitute financial advice.
