Ripple (XRP) extended its bearish streak to the $1.12 support level on Friday, reflecting intense headwinds in the broader crypto market primarily due to macroeconomic pressures.
XRP is under pressure amid capital outflows
Derivatives and institutional digital asset products are seeing low participation, reflecting persistent risk aversion in the crypto markets. The Crypto Fear and Greed Index, at 15 in extreme fear territory on Friday, underlines this cautious investor sentiment.
Open interest (OI) in XRP futures stood at $2.64 billion on Friday, a slight decrease from $2.66 billion the previous day. This contraction signals a continued reduction in risk appetite among market participants.
The ongoing weakness in derivatives demand underlines declining confidence in XRP’s short-term prospects. As a result, traders are rapidly closing existing positions instead of opening new longs, adding to the downward pressure on the asset.
Meanwhile, light inflows into XRP spot exchange-traded funds (ETFs) failed to spark a bullish reversal. Inflows totaled $2.55 million on Friday, following slow activity the previous day, SoSoValue data shows.
If headwinds persist and weigh on demand, a continued bearish trend could extend losses to the recent low of $1.05 and the psychological support level of $1.00.
Price Analysis: XRP bearish trend continues
XRP is trading above $1.12, which remains a bearish trend in the near term. The spot price is below the 50-day, 100-day and 200-day exponential moving averages (EMA) at $1.26, $1.36 and $1.58 respectively.
Although the broader market correction continues, the moving average convergence divergence* (MACD) histogram remains in the positive zone but continues to shrink, indicating that the bullish momentum is waning. Additionally, the pair is unable to recover key trend levels, with the elevated Stochastic Relative Strength Index (RSI) retreating from overbought territory, further highlighting low buyer strength.
XRP faces initial resistance at the Bollinger Middle Band around $1.17, with further hurdles at the 50-day EMA ($1.27) and the upper Bollinger Band ($1.30). Strong resistance levels are seen at the 100-day EMA around $1.36 and the 200-day EMA at $1.58.
On the downside, the lower Bollinger Bands near $1.05 serves as key support. A sustained move below this range could extend losses to the psychologically important $1.00 level, maintaining a bearish bias for the broader technical outlook.
(The technical analysis for this story was written with the help of AI tools.)
Bitcoin, Altcoins, Stablecoins FAQ
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to be used as money. This form of payment cannot be controlled by any one person, group or entity, which eliminates the need for third party involvement during financial transactions.
Altcoins are any cryptocurrency other than Bitcoin, but some people also consider Ethereum a non-altcoin because of the forking of these two cryptocurrencies. If this is true, then Litecoin is the first altcoin built from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, their value backed by the reserve of the asset it represents. To achieve this, the value of a stablecoin is pegged to a commodity or financial instrument, such as the US dollar (USD), whose supply or demand is controlled by an algorithm. The main goal of stablecoins is to provide on/off-ramps for investors looking to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value as cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of the market capitalization of Bitcoin to the total market capitalization of all cryptocurrencies. This provides a clear picture of the interest in Bitcoin among investors. High BTC dominance typically occurs before and during bullish rallies, with investors resorting to investing in relatively stable and high market capitalization cryptocurrencies like Bitcoin. A decline in BTC dominance usually means that investors are moving their capital and/or profits into altcoins in search of higher returns, which usually triggers the explosion of altcoin rallies.
