• XRP rebounds from last week’s support at $1.50 but struggles below resistance at $1.77.
• Active addresses on the XRP Ledger dropped below 18,000 on Sunday amid risk-averse sentiment.
• Retail interest in XRP continues to decline, with futures Open Interest dropping to $2.81 billion.
• XRP ETF inflows returned on Friday with nearly $17 million after suffering a record single-day outflow of $93 million.

Ripple (XRP) is trading above $1.60 on Monday, attempting to recover from last week’s sharp decline that tested support at $1.50. Although the cross-border remittance token is up nearly 2% so far intraday, weakening on-chain metrics and declining retail participation suggest the recovery may face headwinds.

Retail demand slows as XRP ETFs resume inflows

Institutional investors turned to XRP as losses spread across the crypto market, sinking funds into spot Exchange-Traded Funds (ETFs). The crypto investment products, tracking XRP spot price, recorded inflows of nearly $17 million on Friday after recording the largest single-day outflow since launch of nearly $93 million on Thursday.

ETF flows serve as a gauge for market sentiment, with large or steady inflows indicating that investors are confident XRP could sustain recovery in the short-term.

Meanwhile, retail interest in XRP extended its bearish trend, as OI dropped to $2.81 billion on Monday, from $2.97 billion the previous day. Open Interest (OI) tracks the total notional value of outstanding futures contracts, making it a key indicator of market participation.

The declining OI suggests investors lack confidence in XRP’s ability to maintain its upward momentum. More importantly, falling OI indicates that traders are closing positions rather than opening new ones, weakening the crucial tailwind XRP needs to sustain a recovery.

Subsequently, addresses actively transacting on the XRP Ledger (XRPL) corrected to approximately 18,000 as of Sunday, underscoring low on-chain participation. The Active Addresses metric rose to roughly 21,500 on Saturday but quickly erased those gains as demand shrank, weighing on the price.

Technical outlook: XRP bulls attempt recovery

XRP is trading at $1.62, rising from the day's open at $1.59. The 50-day Exponential Moving Average (EMA) at $1.96, the 100-day EMA at $2.10, and the 200 the 200-day EMA at $2.25 slope lower and stack above the price, capping rebounds and preserving a bearish structure.

Meanwhile, the Moving Average Convergence Divergence (MACD) line holds below the signal line on the daily chart, with the negative histogram expanding below the zero line, prompting investors to reduce their exposure. However, the Relative Strength (RSI) at 28 (oversold) on the same chart is edging slightly higher, hinting at seller exhaustion.

The descending trend line from $3.66 limits gains, with resistance seen at $2.21 likely to cap rebound attempts. A daily close below the immediate support at $1.60 would keep bears in control and XRP poised to test the next demand zone at $1.50.

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