XRP continued to struggle on Wednesday, with the token trading at approximately $1.018 and lingering just above the critical $1.00 support level. Buyers attempted to stabilize the price, but overall market sentiment remained cautious.
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Spot XRP exchange-traded funds listed in the United States posted subdued trading activity since Friday, according to market data. This trend points to limited participation from institutional investors amid the broader cryptocurrency market slowdown.
The absence of fresh ETF inflows has reinforced bearish sentiment around XRP. Without renewed demand from large investors, the token faces challenges in absorbing selling pressure and achieving a lasting recovery above important technical resistance points.
Nonetheless, cumulative net inflows into XRP ETFs have held steady at $1.51 billion, and total assets under management stand at around $950 million. These figures indicate that long-term investors have not fully exited their positions, even as trading volumes remain low.
Institutional demand for XRP remains subdued, yet cumulative net ETF inflows of $1.51 billion show that some investor interest persists despite weak trading volumes.
Analysts suggest that sustainable price gains may require consistent daily inflows and stronger participation from institutional buyers.
Market sentiment and risk environment
The broader crypto Fear & Greed Index measured 37 on Wednesday, slightly higher than the previous day’s reading of 30 but still firmly in the “fear” category. This level reflects investors’ ongoing caution and limited risk appetite across digital asset markets.
Persistent inflation concerns, geopolitical uncertainty, and a lack of bullish catalysts have weighed on demand for cryptocurrencies. Observers note that such conditions typically lead traders to reduce exposure to altcoins like XRP or delay entering new positions until sentiment improves.
Unless there is a notable shift in market mood, short-term rebounds in XRP may be met with renewed selling, limiting recovery prospects.
XRP derivatives and open interest
In derivatives markets, XRP perpetual futures open interest decreased by less than 1% to $2.69 billion on Wednesday. However, this level marks a 41% increase from the $1.90 billion reported on August 5. The rise in open interest implies more leveraged positions are being added by traders.
Still, this metric does not clarify whether the positioning is predominantly bullish or bearish. Analysts highlight that if open interest increases alongside positive funding rates and rising prices, this scenario could support a reversal above the $1.00 threshold. On the other hand, rising open interest as prices fall could signal a build-up of short positions, potentially increasing volatility.
Mini dictionary: Perpetual futures are open-ended derivative contracts that allow traders to speculate on price movements without an expiry date, using leverage for greater potential gains or losses.
| Date | XRP Open Interest |
|---|---|
| August 5 | $1.90 billion |
| August 12 | $2.69 billion |
Technical outlook for XRP
From a technical standpoint, XRP holds a bearish short-term bias. The token currently trades below its 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs), highlighting ongoing downward momentum.
The Moving Average Convergence Divergence (MACD) remains under the zero line, and its negative histogram signals persistent selling pressure. Meanwhile, the Relative Strength Index stands at 39, just above the oversold mark of 30, which suggests continued pressure but not yet seller exhaustion.
A daily close below $1.00 would likely confirm a bearish continuation pattern, exposing XRP to further losses. Traders emphasize that buyers must hold the $1.00 psychological support to keep open the possibility of a short-term recovery.
Immediate resistance lies at the 50-day EMA near $1.10, followed by the 100-day EMA around $1.18. A move above these levels could ease downward momentum and position XRP for a potential test of the 200-day EMA at $1.37. Until then, rallies below these resistance points are viewed as temporary corrections within an ongoing downtrend.
