Ripple (XRP) is hovering above $1.90 at the time of writing on Tuesday, following a wave of bearish sentiment across the broader cryptocurrency market amid persistent negative sentiment.
XRP is trading under pressure amid low retail interest
Retail interest in XRP remains fairly low, with futures open interest (OI) at $3.71 billion on Tuesday, down from $3.72 billion the previous day. Demand for XRP derivatives has not recovered since the October 10 crash, which saw long positions lose $610 million and shorts lose $90 million, according to Coinglass data.
In comparison, after XRP hit a new record high of $3.66 on July 18, OI peaked at $10.94 billion on July 22. Lower retail interest is reflected in lower OI. This shows that investors have lost confidence in XRP’s ability to maintain its bullish momentum.
A sustained improvement in OI is needed to support further price growth beyond the key $2.00 level in the near term.
Despite declining retail interest in
Cumulative inflow volume has reached $1 billion, increasing net assets to $1.12 billion. This steady rise of the XRP ETF highlights the growing interest in altcoin-based crypto investment products.
Technical Outlook: XRP is trading amid continued downside pressure
At the time of writing on Tuesday,
The Moving Average Convergence Divergence (MACD) indicator sits slightly below the zero line on the daily chart, indicating fading momentum. If the blue line remains below the red signal line then investors will consider further reducing their risk. The red histogram bars are also extending below the mean line, suggesting that bearish momentum is increasing.
The Relative Strength Index (RSI) at 36.72 is below the midline and is consistent with prolonged negative pressure. A falling trend line from the $3.09 cap price leads with resistance seen near $2.11. However, a close above this barrier could lead to a corrective bounce above the crucial $2.00 level.
Nevertheless, XRP’s short and medium-term EMAs continue to drop below and remain above the spot, limiting the rebound and maintaining an overall downside bias. Meanwhile, the rising trend line from $1.45 outlines the broader structure, providing support near $1.86. If XRP breaks below this support level, the price could rise to the April low of $1.61.
Crypto ETF FAQ
An exchange-traded fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can track not just a single asset, but also groups of assets and sectors. For example, a Bitcoin ETF tracks the price of Bitcoin. An ETF is a tool that investors use to gain exposure to a certain asset.
Yes. The first Bitcoin futures ETF in the US was approved by the US Securities and Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still awaiting regulatory permission. The SEC says the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the past few years.
Yes. The SEC approved the listing and trading of several Bitcoin spot exchange-traded funds in January 2024, opening the door for institutional capital and mainstream investors to trade the main cryptocurrency. The industry described this decision as a game changer.
The main advantage of crypto ETFs is the possibility of exposure to cryptocurrencies without ownership, thereby reducing the risk and cost of holding assets. Other advantages are a lower learning curve for investors and higher security as ETFs take charge of securitizing the underlying asset holdings. As far as the main drawbacks go, the main drawback is that as an investor you cannot have direct ownership of the asset, or, as they say in crypto, “not your keys, not your coins.” Other disadvantages are the high costs associated with holding crypto because ETFs charge fees for active management. Finally, even though investing in an ETF reduces the risk of holding the asset, price fluctuations in the underlying cryptocurrency are likely to be reflected in the investment vehicle as well.
(The technical analysis for this story was written with the help of AI tools)
