XRP remains under heavy selling pressure, extending its correction into a fourth consecutive day on Tuesday as bearish sentiment dominates the market. The cryptocurrency is now approaching the psychologically important $1 level, a key support that could determine the next phase of its price trajectory.
Institutional Demand Remains Tepid
Despite a slight uptick in the broader crypto market, investor appetite for XRP remains subdued. The Crypto Fear & Greed Index, a measure of market sentiment, remains in Fear territory at 28, up marginally from 26 the previous day but still reflecting cautious positioning among traders.
On the institutional front, spot XRP exchange-traded funds (ETFs) recorded zero net inflows on Monday, following a modest $107,000 inflow on Friday. While cumulative net inflows into XRP ETFs have reached $1.48 billion, indicating sustained long-term interest, analysts emphasize that stronger and more consistent capital flows are needed to support a meaningful recovery.
Retail participation also shows little sign of revival. Data from CoinGlass indicates that XRP perpetual futures open interest edged up to $2.31 billion on Tuesday from $2.10 billion a day earlier, but without a sustained increase in trading activity, the token remains vulnerable to further downside.
Ripple's Legal Battle: A Look Back
In a recent talk at the University of Kansas School of Business, Ripple CEO Brad Garlinghouse revealed that the company seriously considered shutting down after the U.S. Securities and Exchange Commission (SEC) filed its lawsuit against Ripple in 2020. Garlinghouse said he and co-founder Chris Larsen discussed dissolving the firm and distributing XRP holdings to shareholders rather than fighting the regulator in court. Ultimately, Ripple chose to litigate, a decision that proved pivotal when Judge Analisa Torres ruled that XRP itself is not a security. The case was officially settled in May 2025, ending one of the crypto industry's most closely watched legal disputes.
Technical Analysis: Bears in Control
The XRP/USD 4-hour chart remains firmly bearish, with the token trading within a descending channel that reinforces the prevailing downtrend. XRP is currently below its 50-day exponential moving average (EMA) at $1.16, the 100-day EMA at $1.26, and the 200-day EMA at $1.47. As long as the price stays below these levels, any rallies are likely to be viewed as temporary bounces rather than the start of a new uptrend.
The Relative Strength Index (RSI) is hovering around 39, indicating weak momentum and continued seller dominance. If selling pressure intensifies, initial support lies near $1.04. A break below that level could open the door for a decline toward the lower boundary of the bearish channel around $0.78, where buyers may attempt to establish a floor.
On the upside, immediate resistance is at $1.12, followed by the 50-day EMA at $1.16 and the 100-day EMA near $1.26. A sustained move above these levels would be needed to improve the short-term outlook.
For broader market context, see our analysis of Chainlink's rebound amid a Bitcoin-driven altcoin rally and the selling pressure on Hyperliquid HYPE.
This article is for informational purposes only and does not constitute financial advice.
