Ripple Price Forecast: XRP extends losses below $2.00 even as ETF inflows exceed $1 billion
- XRP bulls are overwhelmed by sell-side pressure as losses pile up.
- XRP retail demand remains significantly suppressed, with futures Open Interest averaging $3.71 billion.
- Prices fail to react to encouraging data from ETFs, which have sustained 21 days of inflows, and total volume has reached $1 billion.
Ripple (XRP) is finding footing above $1.90 at the time of writing on Tuesday after a bearish wave swept across the broader cryptocurrency market, building on persistent negative sentiment.
XRP trades under pressure amid low retail interest
Retail interest in XRP remains significantly low, with the futures Open Interest (OI) at $3.71 billion on Tuesday, down from $3.72 billion the previous day. Demand for XRP derivatives has not recovered since the October 10 crash, which liquidated $610 million in long positions and $90 million in shorts, according to CoinGlass data.
In comparison, the OI peaked at $10.94 billion on July 22, after XRP hit a new record high of $3.66 on July 18. Low retail interest is reflected in OI remaining subdued. This suggests that investors have lost faith in XRP’s ability to maintain an uptrend.
A sustained recovery in OI is required to support price advance beyond the $2.00 key level in the short term.
Despite the diminishing retail interest in XRP, spot Exchange Traded Funds (ETFs) listed in the United States (US) have extended their inflow streak to 21 consecutive days, with almost $11 million deposited on Monday.
The cumulative inflow volume has reached $1 billion, boosting net assets to $1.12 billion. This steady uptake of XRP ETFs highlights growing interest in altcoin-based crypto investment products.
Technical outlook: XRP trades amid lingering downside pressure
XRP is trading at $1.91 at the time of writing on Tuesday while holding well below the 50-day Exponential Moving Average (EMA) at $2.19, the 100-day EMA at $2.37 and the 200-day EMA at $2.44, which keep the bearish alignment intact.
The Moving Average Convergence Divergence (MACD) indicator sits marginally below the zero line on the daily chart, suggesting fading momentum. Investors will consider further reducing their exposure if the blue line stays below the red signal line. The red histogram bars are also expanding below the mean line, suggesting that bearish momentum is increasing.
The Relative Strength Index (RSI) at 36.72 is below the midline and consistent with lingering downside pressure. A descending trend line from $3.09 caps price advances, with resistance seen near $2.11. However, a close above this barrier could trigger a corrective bounce above the pivotal $2.00 level.
Still, XRP's short- and medium-term EMAs continue to slope lower and sit above spot, which caps rebounds and maintains an overall downward bias. Meanwhile, the rising trend line from $1.45 underpins the broader structure, offering support near $1.86. If XRP breaks below this support level, the price could extend the slide toward April's low of $1.61.
Crypto ETF FAQs
An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.
Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.
Yes. The SEC approved in January 2024 the listing and trading of several Bitcoin spot Exchange-Traded Funds, opening the door to institutional capital and mainstream investors to trade the main crypto currency. The decision was hailed by the industry as a game changer.
The main advantage of crypto ETFs is the possibility of gaining exposure to a cryptocurrency without ownership, reducing the risk and cost of holding the asset. Other pros are a lower learning curve and higher security for investors since ETFs take charge of securing the underlying asset holdings. As for the main drawbacks, the main one is that as an investor you can’t have direct ownership of the asset, or, as they say in crypto, “not your keys, not your coins.” Other disadvantages are higher costs associated with holding crypto since ETFs charge fees for active management. Finally, even though investing in ETFs reduces the risk of holding an asset, price swings in the underlying cryptocurrency are likely to be reflected in the investment vehicle too.
(The technical analysis of this story was written with the help of an AI tool)
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