Ripple Price Forecast: XRP holds above $1.00 as losses narrow amid muted investor interest

• Above the crucial $1.00 support level, XRP is showing signs of consolidation, although scope for a recovery remains restricted.
• Following two successive days of outflows, XRP spot ETFs recorded little activity on Wednesday as investors remained risk-averse.
• Falling moving averages underline a weak technical picture, leaving sellers in control of XRP.

At around $1.05 on Thursday, Ripple (XRP) is trimming its losses while the wider cryptocurrency market remains largely subdued. Since the steep correction on 5 November, buyers have seen no respite. They are relying on support in the $1.00 to $1.05 zone to establish range-bound trading before making further attempts at recovery.

XRP upside remains constrained as ETF demand fades

Outflows of $7.6 million on Tuesday and approximately $10.4 million on Monday were followed by subdued activity in XRP spot Exchange-Traded Funds (ETFs) on Wednesday. Although demand for the ETFs has dried up, cumulative inflows total $1.8 billion and net assets under management average $1.2 billion. Those figures highlight institutions’ positive long-term outlook for the underlying XRP token.

At 28 on Wednesday, the crypto Fear & Greed Index remains in Fear territory, only marginally below the previous day’s reading of 29. The broader sentiment picture is considerably weaker than when the index stood at 57 in the Greed region. This backdrop is consistent with waning ETF demand and reduces the likelihood of a recovery.

A greater likelihood of a December interest rate rise by the Federal Reserve (Fed) is also being priced in by investors. Since tighter monetary policy seldom benefits risk assets, investors may be adjusting their positions or staying on the sidelines before the meeting.

Technical analysis: XRP remains under pressure at key support

With XRP trading at $1.05, its bearish phase continues beneath the 50-day, 100-day and 200-day Exponential Moving Averages (EMAs), which stand at $1.27, $1.29 and $1.34, respectively. These layers of overhead resistance suggest limited near-term upside. Meanwhile, the SuperTrend at $1.21, now above the spot price, represents the first technical hurdle buyers would need to clear to alleviate downward pressure.

Near 24, the Relative Strength Index (RSI) is in oversold territory. This suggests that, despite bearish momentum being stretched, sellers retain control of the trend.

Before XRP can challenge the 50-day EMA at $1.27 or the 100-day EMA at $1.29, it faces initial resistance from the SuperTrend line near $1.21. Further above, the 200-day EMA at $1.34 strengthens the broader supply zone. Recovery attempts are likely to remain corrective while the price stays below this group of moving averages. Until buyers decisively lift XRP back above at least $1.21, the balance of risk remains tilted towards further declines.

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