Ripple Price Forecast: XRP slips and tests $1.40 support amid reduced institutional uptake
- XRP declines and trades around $1.40 support, facing capped upside and a weakening technical structure.
- US-listed spot XRP ETFs remained muted on Friday, bringing weekly inflows to $19 million.
- The derivatives market holds steady, with perpetual futures Open Interest (OI) rising marginally to 2.21 billion XRP.
Ripple (XRP) falters, trading near $1.40 at the time of writing on Monday. Since the August rally to $1.70, the remittance token has seen capped upside, prompting profit-taking. If the token’s technical structure continues to weaken, recovery could be an uphill battle, while raising the odds of an extended sell-off.
XRP wobbles amid muted ETF demand
US-listed XRP spot Exchange-Traded Funds (ETFs) remained muted on Friday, without any flows, according to SoSoValue. This suggests institutional investors may be adopting a cautious stance ahead of the Federal Reserve (Fed) decision on interest rates and the ongoing conflict between the United States (US) and Iran.
Despite weak demand, inflows totaled $19 million through Friday, marking an eight-week bullish streak. Meanwhile, cumulative inflows remain steady at $1.68 billion, undermining institutional investors’ long-term positive outlook on XRP. Assets under management hold at $1.48 billion.
The derivatives market has stabilized, with perpetual futures Open Interest (OI) rising only marginally to 2.21 billion XRP on Monday, from 2.2 billion XRP the previous day. While the minor increase is commendable, it falls short compared to the broader correction from 2.78 on August 15. Rising OI is needed to reinforce the bullish outlook and increase the odds of a steady recovery.
Technical analysis: XRP tests key support
XRP trades at $1.40, holding a modest bullish bias as price remains above the main Exponential Moving Averages (EMAs). The 50-day, 100-day and 200-day EMAs at roughly $1.25, $1.24 and $1.36 sit below spot and suggest underlying trend support, even as the recent advance has stalled.
The Parabolic SAR at $1.61 remains well above the market, while the Relative Strength Index (RSI) has eased to about 59, pointing to cooling but still positive momentum after an overbought phase.
On the topside, immediate resistance lies at the downward trendline break level around $1.43, with the Parabolic SAR near $1.61 acting as a higher barrier if buyers extend the move. On the downside, initial support is aligned with the 200-day EMA near $1.36, ahead of a wider demand zone defined by the 50-day EMA at $1.25 and the 100-day EMA at $1.24, where dip-buying interest could re-emerge if the pair corrects lower.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
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.
Nothing in this material constitutes investment advice, personal recommendation, investment research, an offer, or a solicitation to buy or sell any financial instrument. The content has been prepared without consideration of your individual investment objectives, financial situation, or needs, and should not be treated as such.
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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