Ripple Price Forecast: XRP extends sell-off as $1.00 support comes into view

• XRP’s drop below $1.10 comes as relentless selling continues across the wider crypto market.
• Outflows from XRP spot ETFs and lower futures open interest point to continued weakness in institutional and retail demand.
• A negative MACD histogram and an oversold RSI accompany intensifying bearish pressure on XRP.

Below $1.00 at the time of writing on Tuesday, Ripple (XRP) remains under selling pressure. Falling technical indicators continue to constrain the token’s upside, leaving the path of least resistance firmly to the downside. 

With Bitcoin (BTC) dropping below $75,000, XRP’s decline reflects weakness across the broader crypto market. The downturn has now lasted six consecutive days, against a backdrop of risk aversion fuelled by macroeconomic uncertainty and other factors.

Due later on Tuesday, the United States (US) Consumer Price Index (CPI) report is the next focus for traders. The Federal Reserve (Fed) uses this inflation measure to help determine the direction of monetary policy.

XRP weakens as ETF and retail demand recede 

Monday brought $10 million in outflows from XRP spot Exchange-Traded Funds (ETFs), reinforcing the risk-off mood. Activity had previously been subdued for four consecutive days from Tuesday last week. With little demand for XRP digital investment products to cushion the token against headwinds, the likelihood of a prolonged downtrend has increased.

Cumulative inflows nevertheless total $1.8 billion, while net assets under management stand at $1.24. Taken together, these figures suggest that investor interest in the underlying token remains positive over the longer term. 

Activity in derivatives remains largely muted, however. On Tuesday, perpetual futures open interest (OI) stood at 2.24 billion XRP, only slightly below the previous day’s 2.26 billion XRP. CoinGlass data also show OI remaining beneath November’s highs of 2.35 billion XRP and September’s 2.46 billion. Persistently weak retail demand may make a price recovery difficult, while increasing the likelihood of selling towards the critical $1.00 zone.

Technical analysis: XRP faces the risk of further declines

Trading at $1.08, XRP retains a bearish near-term bias, with its price well beneath the key Exponential Moving Averages (EMAs) and a descending resistance trendline. Overhead, the 50-day EMA at $1.30, 100-day EMA at $1.30 and 200-day EMA at $1.35 indicate that medium- and longer-term supply is firmly limiting gains. Meanwhile, the SuperTrend indicator at $1.26 supports the view that rallies remain corrective moves within the broader downtrend.

At about 25, the Relative Strength Index (RSI) has moved into oversold territory. With the Moving Average Convergence Divergence (MACD) histogram still negative, bearish momentum appears stretched, although there is no convincing reversal signal yet.

The SuperTrend line around $1.26 provides the first resistance level. Beyond it, the 50-day EMA at $1.29 and the break level of the descending resistance trendline near $1.30 create a confluence band, together marking the first significant obstacle to a rebound. Higher still, a wider supply zone comprises the 100-day EMA at $1.30 and the 200-day EMA at $1.35. Reclaiming that zone would be necessary to weaken the prevailing bearish structure.

The daily chart offers no clear support nearby, leaving the price exposed to additional losses while it remains below this cluster of resistance levels.

(The technical analysis of this story was written with the help of an AI tool. Know more.)