XRP Price Analysis: ETF outflows and fading momentum suggest scope for deeper correction
- XRP price hovers at $1.37 on Friday after printing four consecutive red candlesticks this week and losing over 4%.
- US-listed spot ETFs recorded a fresh outflow of $5.83 million on Thursday, signaling a cautious stance.
- Technical outlook shows weakening momentum indicators, hinting at a deeper correction.
Ripple (XRP) is trading at $1.37 on Friday, after posting four consecutive daily losses this week. Weakening momentum and a shift in institutional sentiment, highlighted by fresh outflows from Exchange Traded Funds (ETFs), are weighing on price action, suggesting a deeper correction ahead.
Institutional demand shows signs of caution
SoSoValue data shows that XRP spot ETFs recorded an outflow of $5.83 million on Thursday, snapping a two-day inflow streak. If this outflow continues and intensifies, XRP could see further price corrections.
Some signs of optimism
Apart from institutional demand showing signs of caution, derivatives data hint at some signs of optimism for XRP. CoinGlass’ long-to-short ratio for XRP reads 1.03 on Friday, nearing the highest level over a month after mostly remaining in the red territory since early April. This ratio, being above one, reflects bullish sentiment in the market, as more traders are betting on the asset’s price to rise.
CoinGlass’ OI-Weighted Funding Rate data for XRP flipped positive on Friday, reading 0.0015%, indicating that longs are paying shorts and projecting a mild bullish sentiment.
Technical outlook: XRP’s momentum indicators show bearish signs
XRP is trading at $1.37 on Friday, maintaining a bearish near-term bias as it holds within a broader downward parallel channel and remains below all key EMAs. The 50-day EMA at $1.40 is the nearest capping level overhead, with the 100-day EMA at $1.51 and the channel’s upper boundary near $1.56 reinforcing a layered topside barrier.
Momentum is lackluster, as the RSI on the daily chart at 45 remains below the neutral 50 line, while the MACD indicator has slipped further into negative territory, suggesting rallies are likely to remain vulnerable while price trades below these averages.
On the downside, initial demand is seen at the horizontal support zone around $1.30, where buyers previously defended the lower end of the recent range, ahead of the channel’s distant lower boundary near $0.75 if selling pressure accelerates.
On the topside, a daily close above the 50-day EMA at $1.40 would be the first step toward easing immediate downside pressure, with further resistance emerging at the 100-day EMA around $1.51 and then at the channel top near $1.56; only a sustained break beyond these levels would start to challenge the broader bearish structure, ahead of the more distant horizontal resistance at $1.90.
(The technical analysis of this story was written with the help of an AI tool.)
Ripple FAQs
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.
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Past performance is not a reliable indicator of future performance and/or results. Forward-looking scenarios or forecasts are not a guarantee of future performance. Actual results may differ materially from those anticipated.
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