Ripple (XRP) is rising above $1.40 at the time of writing on Monday amid fresh tariff-triggered headwinds in the broader cryptocurrency market. The selloff at $1.33, the token’s intraday low, can be attributed to macroeconomic uncertainty, geopolitical tensions and risk-averse sentiment, among other factors.
XRP flows slow as capital flows out of Bitcoin, Ethereum
Investments in XRP-related investment products dropped to $3.5 million last week, CoinShares reports. Ultimately, this represents a 90% decline from last week’s inflow of $33 million. Total assets under management average $2.6 billion, with YTD inflows of $151 million.
Meanwhile, demand for Bitcoin-linked financial products remained on the backfoot, with cumulative outflows reaching $215 million last week. Despite the selloff that has dragged the crypto king below $65,000, total assets under management stand at $104 billion. However, according to CoinShares, YTD outflows have averaged $1.3 billion.
“Bitcoin remains the key mover of this negative sentiment, seeing outflows of US$215 million, while short-Bitcoin investment products have seen renewed interest with inflows of US$5.5 million, the largest of any asset,” CoinShares reports.
Like Bitcoin, Ethereum also experienced extended capital outflows last week, with outflows totaling $36.5 million. Major assets YTD outflow is $494 million, while cumulative assets under management exceed $15 million.
As for retail interest, XRP derivatives are showing stability, as futures open interest (OI) increased slightly to $2.4 billion on Monday from $2.33 billion the previous day. Coinglass data confirms the stability of OI, which remains above $2.32 billion after falling to $2.56 billion on February 16.
The steady increase in OI shows that investors are leaning towards risk-on as confidence in the token has improved, raising the possibility of a potential correction in the coming sessions.
Technical Outlook: Assessing XRP’s Recovery Potential
XRP is hovering around $1.40, supported by the Moving Average Convergence Divergence (MACD) indicator, which is above its signal line on the daily chart. However, as the green histogram bars shrink, the upside value of the remittance token may limit further upside.
Additionally, the Relative Strength Index (RSI) at 39 remains well below neutral on the daily chart, which is in line with the overall weak technical structure.
The 50-day exponential moving average (EMA) at $1.66, the 100-day EMA at $1.87 and the 200-day EMA at $2.09 are sloping lower, indicating that XRP may face an extended downside movement, targeting an intraday low at $1.33, October 10 support at $1.25.
If sentiment improves and investors increase risk-on, a modest increase would bring XRP into the supply zone at $1.54, which would align with the February 6 low of $1.12.
