Ripple Price Forecast: XRP pares losses above $1.00 amid subdued investor interest
- XRP shows signs of consolidation above the critical $1.00 support, but the recovery outlook remains limited.
- XRP spot ETFs stayed quiet on Wednesday, after two consecutive days of outflows, as risk-off sentiment persists.
- A weak technical outlook, characterized by declining moving averages, keeps XRP in bearish hands.
Ripple (XRP) pares losses on Thursday, trading around $1.05 amid a largely lethargic broader cryptocurrency market. Bulls have found no relief since the sharp correction on November 5 and are banking on support between $1.00 and $1.05 to push for range trading ahead of fresh recovery attempts.
Cooling ETF demand limits XRP upside
XRP spot Exchange-Traded Funds (ETFs) remain subdued, with muted activity on Wednesday following $7.6 million in outflows the day before and approximately $10.4 million on Monday. Despite the ETF demand drying up, cumulative inflows stand at $1.8 billion, while net assets under management average $1.2 billion, underscoring the long-term positive institutional outlook in the underlying XRP token.
The crypto Fear & Greed sits at 28 in the Fear territory on Wednesday, down only slightly from 29 the previous day. More broadly, the current market sentiment pales in comparison to the index at 57 in the Greed region. This setup aligns with the fading ETF demand, lowering recovery odds.
Investors are also pricing in a higher probability of the Federal Reserve (Fed) hiking interest rates in December. Tighter monetary policy rarely favors risk assets, and so investors may be repositioning or sitting on the sidelines ahead of the meeting.
Technical analysis: XRP tests key support level
XRP trades at $1.05, extending a bearish phase below the 50-day, 100-day and 200-day Exponential Moving Averages (EMAs) lines at $1.27, $1.29 and $1.34, respectively. This stacked overhead structure suggests the token remains capped in the near term, while the SuperTrend at $1.21, now above spot, marks the first technical barrier that bulls would need to reclaim to ease downside pressure.
The Relative Strength Index (RSI) sits near 24, in oversold territory, hinting that while bearish momentum is stretched, sellers still dominate the trend.
Initial resistance lies at the SuperTrend line around $1.21, before the 50-day EMA at $1.27 and the 100-day EMA at $1.29, with the 200-day EMA higher up at $1.34 reinforcing a broader supply zone. As long as price holds beneath this cluster of moving averages, any recovery attempts are likely to be corrective, with risk skewed toward further downside until buyers can decisively push XRP back above at least the $1.21 level.
(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.
Mitrade makes no representation or warranty as to the accuracy or completeness of the information provided and accepts no liability for any loss arising from reliance on such information.
Recommended Articles
