Ripple (XRP) extends its downtrend, trading around $1.09 at the time of writing on Friday, its lowest level since November 2024. The cross-border remittance token’s free fall since the week began aligns with a broader crypto market sell-off, with Bitcoin (BTC) closing in on the critical $60,000 level and Ethereum (ETH) approaching support at $1,600. Capital outflows continue to weigh on the overall outlook, increasing the odds of an extended sell-off.
XRP retail demand fades as declines deepen
XRP remains under duress as risk-averse sentiment persists in the derivatives market. According to CoinGlass data, Open Interest (OI) in perpetual futures narrowed to $2.51 billion on Friday, down from $2.59 billion the day before and $2.96 billion on Monday.
A sustained drop in OI suggests that traders lack conviction in XRP’s ability to sustain an uptrend and are therefore unwilling to open new positions.
Retail participants remain primarily bearish, as evidenced by the OI-Weighted Funding Rate in negative territory at -0.0079% on Friday. This indicates that sellers are willing to pay a premium in fees to keep their short positions open, convinced that the decline will persist.
Despite a modest $3.83 million inflow into XRP spot ETFs from institutional investors on Thursday, XRP’s price continued its downward trajectory, edging closer to the pivotal $1.00 support. According to SoSoValue, cumulative inflows stand at $1.43 billion while net assets under management average $1.01 billion.
Price analysis: XRP bulls rely on $1.00 lifeline support
XRP trades at $1.12, extending a dominant bearish bias as price holds well beneath the 50-day, 100-day and 200-day Exponential Moving Averages (EMAs). The stacked bearish alignment of the short-, medium- and long-term EMAs above spot reinforces a downside-skewed structure, while the Relative Strength Index (RSI) near 20 highlights oversold conditions that could slow the decline.
The Moving Average Convergence Divergence (MACD) histogram remains in negative territory on the daily chart, suggesting persistent selling pressure despite the stretched momentum backdrop. Moreover, a heavily oversold Relative Strength Index (RSI) at 19 on the same chart suggests that the downtrend is overstretched and XRP may be due for a rebound.
On the topside, initial resistance emerges at the 50-day EMA around $1.35, ahead of the 100-day EMA near 1$.43. Above these, the bearish downward resistance trendline, with a key break level around $1.52, is expected to cap recovery attempts before the more distant 200-day EMA near $1.64 comes into play.
A sustained sell-off could push XRP into the demand at $1.10, followed by a deeper correction to the critical $1.00 level, where interested buyers could seek re-engagement.
(The technical analysis of this story was written with the help of an AI tool.)
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.