Ripple Price Forecast: Despite muted investor interest, XRP trims losses above $1.00

• Recovery prospects for XRP remain constrained, even as the token appears to be consolidating above crucial support at $1.00.
• With risk aversion still prevailing, XRP spot ETFs recorded subdued activity on Wednesday following two straight days of outflows.
• Falling moving averages reinforce a weak technical picture, leaving bears in control of XRP.

A sluggish mood across the broader cryptocurrency market accompanies Ripple’s (XRP) move to trim losses on Thursday, with the token trading near $1.05. Since the steep correction on November 5, bulls have seen no respite. They are relying on the $1.00 to $1.05 support zone to establish range-bound trading before making renewed attempts at recovery.

Can XRP Recover as ETF Demand Cools?

Institutional demand through XRP spot Exchange-Traded Funds (ETFs) remains lacklustre. Wednesday saw little activity after outflows of $7.6 million on the preceding day and approximately $10.4 million on Monday. Even as ETF demand dries up, cumulative inflows total $1.8 billion and net assets under management average $1.2 billion. These figures highlight a positive long-term institutional view of the underlying XRP token.

Risk appetite remains weak: the crypto Fear & Greed gauge reads 28 in Fear territory on Wednesday, only marginally below the previous day’s 29. The broader sentiment picture is much weaker than when the index stood at 57 in the Greed region. Alongside waning ETF demand, this backdrop reduces the likelihood of a recovery.

A greater likelihood of a December interest rate increase by the Federal Reserve (Fed) is also being priced in by investors. Risk assets seldom benefit from tighter monetary policy. Investors may therefore be adjusting their positions or staying out of the market ahead of the meeting.

Technical analysis: Can XRP hold crucial support?

At $1.05, XRP remains in a bearish phase beneath its 50-day, 100-day and 200-day Exponential Moving Averages (EMAs), which stand at $1.27, $1.29 and $1.34, respectively. With these averages stacked above the price, near-term upside appears constrained. The SuperTrend, now above the spot price at $1.21, presents the first technical hurdle bulls must clear to relieve downward pressure.

Although the Relative Strength Index (RSI), near 24 in oversold territory, suggests bearish momentum is stretched, the trend remains dominated by sellers.

The SuperTrend line near $1.21 provides the first resistance, followed by the 50-day EMA at $1.27 and the 100-day EMA at $1.29. Further up, the 200-day EMA at $1.34 strengthens the wider supply zone. Recovery moves are likely to remain corrective while XRP trades below this moving-average cluster. The balance of risk continues to favour further declines until buyers decisively lift the token above at least $1.21.

(An AI tool assisted in preparing the technical analysis for this article. Learn more.)