• XRP’s range-bound trading broadens after sliding below the pivotal $1.10 level.
• The return of spot ETF inflows and rising futures Open Interest fails to lift XRP’s short-term outlook.
• XRP is stuck within a broader bearish structure defined by a downward trending RSI.

Ripple (XRP) edges toward $1.00 at the time of writing on Friday, weighed down by broader risk-off sentiment in the cryptocurrency market. The decline comes after a short-lived macro-driven rally as inflation in the United States (US) showed signs of easing. 

However, pressure has remained apparent as market participants continue to assess the impact of the persistent war between the United States (US) and Iran.

“If both parties fail to return to the negotiation table, the risk of further structural damage to energy infrastructure across the region remains high, threatening a prolonged Crude and distillate supply crunch and higher inflation,” Simon-Peter Massabni, Head of Business Development at XS.com, said.

XRP attracts modest capital inflows 

The crypto Fear & Greed Index is embedded in the Fear territory at 27 on Friday, marking a marginal improvement from 25 in the Extreme Fear territory the day before. This outlook indicates that appetite for risk assets is improving, albeit gradually, as evidenced by inflows into XRP digital investment products.

Demand for XRP derivatives has gradually increased this week, with the perpetual futures Open Interest (OI) averaging 2.23 billion XRP on Friday, up from 2.19 billion XRP the previous day. A broader scope shows OI averaged 2.1 billion XRP on Monday, underscoring steady growth in risk-on sentiment.

Meanwhile, demand for XRP spot ETFs returned on Thursday, attracting nearly $7 million in inflows, according to SoSoValue data. This positive turnaround comes after three days where activity remains muted. 

Still, cumulative inflows edged higher to $1.49 billion, with net assets averaging $997 million. Sustained appetite for US-listed ETFs is needed to absorb the selling pressure in the spot market and support a steady rebound.

Price analysis: XRP remains pressured toward $1.00

XRP trades at $1.08, keeping a bearish near-term tone. The spot price holds below the 50-day, 100-day and 200-day Exponential Moving Averages (EMAs) at $1.15, $1.25 and $1.45, respectively. The pair also trades under the Bollinger Bands middle layer at $1.09, highlighting persistent overhead supply.

Moreover, the Moving Average Convergence Divergence (MACD) histogram remains marginally positive, hinting at only modest recovery attempts against a capped structure. The Relative Strength Index (RSI) near 44 stays below the midline, reinforcing a subdued bias and suggesting rallies could struggle to sustain beyond nearby resistance.

Initial resistance emerges at the Bollinger middle layer near $1.10, followed by the 50-day EMA at $1.15, with a stronger barrier at the Bollinger upper layer around $1.16. Above there, the 100-day EMA at $1.25 and the 200-day EMA at $1.45 outline a broader bearish framework and would need to be reclaimed to ease downside pressure.

Looking down, immediate support is provided by the Bollinger lower boundary at $1.03. A decisive break below this floor would open room for a deeper slide, whereas holding above it keeps scope for short-covering bounces back toward the $1.10 area.

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