Ripple (XRP) falls below $1.33 on Friday, marking the third consecutive day of declines. The token continues to track the broader cryptocurrency market downturn, with investors closely monitoring heightened macroeconomic uncertainty ahead of the United States (US) Consumer Price Index (CPI) release and next week’s Federal Reserve (Fed) monetary policy decision.
“With CPI this afternoon and the FOMC next week, the next few sessions will determine whether investors are right to challenge policymakers, or whether policymakers respond with more force than the market currently expects,” Crypto Finance analysts said in a written comment.
XRP capital inflows return
US-listed spot Exchange-Traded Funds (ETFs) recorded inflows of approximately 5$ million on Thursday, extending the bullish streak for three days. SoSoValue data shows cumulative inflows holding at $1.7 billion, while net assets under management average $1.45 billion, signaling persistent risk-on appetite. Sustained ETF inflows could help insulate XRP from macro-driven volatility and improve the likelihood of a near-term rebound.
However, retail demand remains subdued, as reflected by perpetual futures Open Interest (OI) at 2.17 billion XRP on Friday, down slightly from 2.19 billion the day before. The suppressed OI is against the backdrop of higher demand in August, which peaked at 2.78 billion. If demand continues to soften, XRP will lack the much-needed tailwind to sustain recovery in the short to medium term.
Technical analysis: XRP slides as headwinds persist
XRP trades at $1.32, holding below the 200-day Exponential Moving Average (EMA) at $1.36 and under the Parabolic SAR at $1.57, which maintains a capped, near-term bearish bias. Price remains, however, above the 50-day EMA at $1.27 and the 100-day EMA at $1.25, hinting at residual underlying demand, while the Relative Strength Index (RSI) above 49 suggests neutral momentum and the Moving Average Convergence Divergence (MACD) below zero reinforces waning bullish pressure.
Initial resistance lies at the 200-day EMA around $1.36, with a stronger barrier at the Parabolic SAR level near $1.57, and a daily close above the former would be needed to ease the current downside bias. On the downside, immediate support is the 50-day EMA at $1.27, followed by the 100-day EMA near $1.25, and a sustained break below these averages would likely open the door to a deeper corrective phase.
(The technical analysis of this story was written with the help of an AI tool. Know more.)