Ripple (XRP) is reaching a turning point as price action has stabilized above $1.90 at the time of writing on Wednesday. Escalating macroeconomic and geopolitical tensions led to an aggressive selloff of cross-border remittance tokens earlier this week.
Meanwhile, institutional and retail interest is weakening, making a steady recovery much less likely.
XRP under pressure amid ETF outflows, decline in derivatives sentiment
XRP spot exchange traded funds (ETFs) recorded their second outflow since launching in November, as investors pulled out nearly $53 million on Tuesday. The outflows came after seven consecutive days of inflows, reflecting ongoing macroeconomic headwinds and risk-off sentiment across the broader crypto market.
According to SoSoValue data, cumulative net inflows are $1.22 billion, and net assets are $1.34 billion. The performance of the XRP Spot ETF will help shape market sentiment going forward.
Meanwhile, XRP continues to face a poor retail market, as evidenced by the derivatives market’s futures open interest (OI) falling to $3.35 billion on Wednesday – the lowest level since January 1. The average OI was $3.53 billion on Tuesday and $4.55 on January 6.
The continued decline in OI indicates that traders are losing interest and confidence in the token’s ability to maintain a recovery. If the trend continues without changing direction, XRP could extend its decline to the April low of $1.61.
Ripple’s stablecoin RLUSD gains popularity with Binance listing
Binance has added support for the dollar-backed stablecoin Ripple USD (RLUSD). The listing includes support for the Ethereum blockchain, with integration with the XRP Ledger (XRPL) expected to follow.
According to a statement released by Ripple, the listing for RLUSD includes spot trading, portfolio margin eligibility, and the inclusion of the stablecoin in Binance Earn.
“This multichain listing ensures greater accessibility for users and institutions, whether they operate natively on XRPL or within the Ethereum ecosystem,” Ripple said.
The integration opens up RLUSD to increased on-chain liquidity while paving the way for real-world payments and large-scale cross-network interoperability.
The demand for stablecoins continues to shape the on- and off-ramps for seamless mutual coexistence of the crypto industry with the traditional finance ecosystem.
Technical Outlook: XRP Stabilizes Above Key Support
Meanwhile, XRP is pressing support at $1.90 amid weak derivatives and deteriorating market structure. Despite the support, the moving average convergence divergence (MACD) on the daily chart remains below its signal line, indicating a strong bearish bias. The histogram bars are expanding below the zero line, supporting the downside thesis and prompting investors to reduce their risk exposure.
A daily close below the $1.90 support level could invalidate a potential correction and trigger an extended decline to the April low of $1.61.
The Relative Strength Index (RSI) on the daily chart should extend the recovery above the midline to influence the next bullish phase. Traders will look for a close above the $2.00 barrier before activating the risk-on mode.
The 50-day exponential moving average (EMA) caps at $2.06, the 100-day EMA at $2.18, and the 200-day EMA at $2.31. Breaking this moving average resistance cluster would give impetus to a bullish price movement in XRP.
