• XRP pushes toward $1.40 immediate support, trading well below the 50-, 100-, and 200-day EMAs.
• XRP posts steady inflows into spot ETFs, signalling a potential shift toward risk-on sentiment.
• The XRP derivatives market remains weak, but futures Open Interest stabilizes at $2.5 billion.

Ripple (XRP) trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.

Despite support at $1.52, XRP is down over 1.5% intraday. On the upside, institutional investors continue to lean into risk while the retail market exhibits potential stability.

XRP ETFs post modest inflows

Inflows into US-listed XRP spot ETFs totaled $6.3 million on Monday, bringing the cumulative inflow to $1.23 billion, and net assets under management to $1.04 billion. Institutional investors have continued to lean into XRP ETFs, marking four consecutive days of inflows.

lat week, XRP ETFs accumulated $39 million in total inflows through Friday. As reported, total inflows into XRP-related investment products averaged $63.1 million last week. The cumulative assets under management stand at $2.6 billion as of Friday, according to CoinShares.

Meanwhile, the XRP derivatives market remains weak, as reflected in futures Open Interest (OI), which stabilised at $2.50 billion on Tuesday, up from $2.47 billion the previous day. Stability in the derivatives market suggests that traders are holding onto their open positions, while a steady increase would support a bullish outlook in XRP as investors lean into risk.

Traders are facing fewer liquidations of leveraged positions, as only $1.38 million in long positions and approximately $263,000 in shorts have been wiped out on Tuesday. For context, $59 million in long positions and $11 million in shorts were liquidated on Thursday as headwinds intensified across the crypto market. Fewer liquidations extend a breather for investors who may want to increase exposure at lower price levels, anticipating short-term rebounds.

Technical outlook: Assessing XRP’s short-term market structure

XRP is trading above $1.40 support, but holds below the 50-day Exponential Moving Average (EMA) at $1.81, the 100-day EMA at $2.00 and the 200-day EMA at $2.18. The downward-slopping moving averages align with the overall bearish trend that continues to cap rebounds.

At the same time, the Moving Average Convergence Divergence (MACD) stays below the signal line on the daily chart, prompting investors to reconsider seeking exposure. Meanwhile, the red histogram bars are contracting, suggesting that bearish momentum may be slowly easing. The Relative Strength Index (RSI) at 34 on the daily chart reflects subdued impulse without reaching oversold conditions.

For XRP to sustain recovery toward Friday's high at $1.54 and the 50-day EMA at $1.81, the RSI should steadily rise toward the midline.

Still, the descending trend line from $3.66 limits recoveries, with resistance at $2.15. As long as the price remains under these technical boundaries, the path of least resistance would stay lower, with targets at $1.25 (October 10 low) and Friday's low at $1.12.

(The technical analysis of this story was written with the help of an AI tool.)