XRP trades at $1.00 as technical signals hint at reversal, institutional demand weak

XRP remains locked near the $1.00 mark, with persistent downward momentum after weeks of selling pressure. The token is currently trading in a narrow band between $1.00 and $1.01, and shows no signs of recovering above major moving averages, raising concerns among investors about potential further declines.

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Bearish technical picture

XRP continues to trade beneath all key short- and long-term moving averages, including the 10-, 20-, 30-, 50-, 100-, and 200-day lines. Technical analysis shows that the 50-day exponential moving average stands at $1.10, the 100-day at $1.18, and the 200-day at $1.37. These levels mark significant resistance that could challenge any attempt at a rebound.

The token has posted a steep drop since its all-time high, with market analyst Ali Charts observing that XRP is down 71.7% from its July 2025 peak of $3.66. According to the analyst, XRP is now trading in an area viewed as “extremely oversold,” and technical traders are closely monitoring the asset for evidence of a bottom. Ali Charts noted that new buy signals may be starting to emerge in the charts.

XRP has fallen 71.7% from its July 2025 high of $3.66. It now shows signs of extreme overselling, and new buy signals could be appearing, suggesting traders are alert for a potential shift in momentum.

The Relative Strength Index (RSI) is currently near 34, which is approaching oversold territory, but so far there has been no clear confirmation of a bullish reversal. Other indicators, such as the Stochastic RSI and Williams %R, also suggest intense downward momentum.

Lackluster institutional participation

Institutional demand for XRP remains subdued. Spot exchange-traded fund (ETF) inflows in the US stand at about $1.51 billion, while assets under management are $950 million. However, daily net flows have been minimal in recent sessions, highlighting limited appetite among large investors.

XRP’s market sentiment also reflects investor caution. The Crypto Fear & Greed Index currently reads 29, placing the market firmly in “Fear” territory. This cautious mood is attributed to continued geopolitical tensions and the lack of positive drivers for the token.

In derivatives, open interest for XRP perpetual futures contracts has risen to 2.74 billion tokens, up from 2.62 billion in the previous session. This 23% jump over early August averages may indicate increased speculative activity, though it is not yet translating into upward pressure on the spot price.

Mini dictionary: Open Interest, the total number of outstanding derivative contracts, such as futures or options, that have not been settled. High open interest may signal greater market activity or speculative interest.

Key support and resistance to watch

Technical analysts note that XRP has broken through several important support levels. Ashley Duke highlighted that the token continues to print lower highs and lower lows, reinforcing the dominant downtrend on daily charts. The move below $1.06 eliminated a key short-term support area, further weakening price structure.

With XRP breaking below $1.06 and respecting a clear downtrend, analysts point to persistent pressure from both the bearishly-aligned 100- and 50-day moving averages, which cap any recovery attempts.

Another analyst, Apex_Legends, pointed to a descending channel pattern guiding price action. If the $1.00 threshold fails to hold, immediate support targets are found at $0.976, followed by $0.926 and then $0.764 if bearish momentum accelerates.

For XRP to improve its short-term outlook, bulls must reclaim the $1.06 level and then break the resistance zone between $1.08 and $1.15. Until then, the token is likely to remain under pressure, trading tightly around support.