XRP Price Forecast: XRP extends sell-off as bears regain control despite ETF inflows
- XRP falls for a second consecutive day and tests support around $1.32 as renewed geopolitical tensions weigh.
- US-listed spot XRP ETFs recorded $14 million in inflows on Tuesday, while futures Open Interest ticks up.
- XRP comes under pressure as the 200-day EMA flips into resistance and the RSI slides toward the midline.
Ripple (XRP) continues to trim gains on Wednesday, trading around $1.32 at the time of writing. The remittance token came under pressure after a massive 72% rally from $1.00 to $1.70 in August stalled on profit-taking and the need to moderate in search of fresh liquidity.
Renewed geopolitical tensions between the United States (US) and Iran are contributing to the headwinds in the broader cryptocurrency market. Investors are evaluating the impact of strikes between the US and Iran on markets, which has also triggered sell-offs across the board.
As appetite for risk assets dwindles, the Fear & Greed Index shows sentiment sliding to 63 in the Greed territory on Wednesday, from 69 the previous day. Further deterioration in market sentiment could accelerate XRP’s sell-off below $1.30.
XRP dips as capital inflows remain steady
The pullback in XRP price remains relatively controlled, as capital flowing into digital investment products extends an 11-day bullish streak. According to SoSoValue data, XRP spot ETFs recorded $14 million in inflows on Tuesday, rising from nearly $6 million the day before. Cumulative inflows now stand at $1.68 billion, while net assets average $1.44 billion.
Retail demand through derivatives has climbed marginally to 2.29 billion XRP on Wednesday, from 2.26 billion the previous day. This minor increase in perpetual futures Open Interest (OI) comes against a backdrop of a spike to 2.78 billion XRP on August 15, the highest level since October. The surge coincided with the rally to $1.70 on August 22; hence, any increase in OI could back a sustained recovery.
Technical analysis: XRP sell-off deepens
XRP trades at $1.32, keeping a soft bearish bias as it holds below the 200-day Exponential Moving Average (EMA) at $1.35 and the long-standing downward resistance trendline that broke near $1.40. The pair, however, still trades above the clustered 50-day and 100-day EMAs just under $1.22, suggesting that while the broader trend remains capped by overhead supply, the underlying structure retains some support.
The Relative Strength Index (RSI) near 55 hints at modest, fading bullish momentum, while the Moving Average Convergence Divergence (MACD) has slipped back into negative territory, reinforcing the idea of a corrective pullback within a still-constrained market.
On the topside, immediate resistance is seen at the 200-day EMA around $1.35, with the next, stronger barrier at the reclaimed downward resistance trendline near $1.40, a zone that would need to give way to ease the broader bearish cap. On the downside, initial support appears at the tight 50-day EMA cluster around $1.22, coinciding with the 100-day EMA. A daily close below this band would expose XRP to a deeper slide and signal that buyers are losing control of the current corrective structure.
(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.
